The highly anticipated initial public offering (IPO) of Bajaj Housing Finance, valued at Rs 6,560 crore, opens for public subscription today, September 9. With a strong grey market premium indicating high investor expectations, the IPO is set to attract considerable attention. On September 6, Bajaj Housing Finance secured Rs 1,758 crore from anchor investors, setting the stage for its public offering. The IPO, which includes a fresh issue of equity shares worth Rs 3,560 crore and an offer for sale (OFS) of Rs 3,000 crore by its parent company, Bajaj Finance, will be available for subscription until September 11.
The price band for the shares has been set between Rs 66 and Rs 70. The allocation for the public issue includes up to 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NII), and at least 35% reserved for retail investors. Additionally, shares worth Rs 500 crore are reserved for existing shareholders, including individuals and Hindu Undivided Families (HUFs) with public stock in Bajaj Finance. This shareholder quota serves as a perk for the company's existing investors.
The IPO proceeds will be used to strengthen the company's capital base to meet future needs and to comply with a Reserve Bank of India (RBI) directive requiring upper-layer non-banking finance companies (NBFCs) to be listed by September 2025. Recent IPOs by other housing finance companies, such as Aadhar Housing Finance and India Shelter Finance, have set a precedent in the market. Current grey market activities suggest that Bajaj Housing Finance shares are trading at a premium of Rs 50-51, indicating an expected listing gain of over 70%.
Partnership with HDFC Sky
Bajaj Housing Finance has teamed up with HDFC Sky for the IPO, leveraging their extensive experience and robust distribution network. HDFC Sky will serve as a lead manager for the IPO, overseeing underwriting, marketing, and distribution of the shares, which will provide BHFL with a significant advantage in reaching investors and enhancing market positioning.
Apply for IPO via HDFC Sky
1. Open Accounts: Set up a demat and trading account with HDFC Sky and complete KYC.
2. Place Bid: Log in to HDFC Sky, select the IPO, and enter your bid within the price band.
3. Payment: Pay through your linked bank account.
4. Confirmation: Receive a bid acknowledgment and check allotment status.
5. Trading: Trade allotted shares once they are listed.