BENGALURU, Sept 11 (Askume) – India’s Bajaj Housing Finance BAJO.NS attracted bids of about $38.6 billion, about 64 times the issue price, making it the most popular major publicly listed company in the IPO market this year.
The company’s public offering, the largest among motherboard IPOs this year worth over $500 million, is driven by the bank’s prospects in the fast-growing home loan market and coincides with the busiest week for IPOs in India in 2024.
Bajaj Housing Finance, a unit of non-bank lender Bajaj Finance (BJFN.NS), will become India’s largest listed home loan finance company with a $782 million initial public offering that will value the company at $7 billion.
Analysts believe the bank is keen to issue the issue due to strong demand for luxury residential loans , attractive IPO pricing and confidence in the reputation of the nearly 100-year-old Bajaj Group, which is also involved in automobile and consumer goods businesses.
Bajaj Housing Finance will raise $424 million through a fresh equity issue, while Bajaj Finance will sell shares worth $357 million. Its price range is Rs 66-70 per share.
Analysts expect interest to continue even after the company lists on the exchange on Monday, September 16.
Ashutosh Mishra, Head of Research, Ashika Stock Broking, said, “Given the demand and over-subscription level for the IPO, the stock will trade at a substantial premium and get listed at Rs 100.”
Shares reserved for large institutions, including foreign institutional investors, banks and mutual funds, were oversubscribed 209 times, while retail investors placed bids for nearly seven times the issued shares.
Data from the London Stock Exchange shows that this year nearly 200 companies have raised more than $7 billion from the High Growth Equity Market (NSEI), more than double the funds raised in the same period last year. This year the stock market has reached record highs more than 50 times.
The last IPO by a home loan finance company was that of Aadhar Housing Finance (AADA.NS) in May , which was oversubscribed nearly 26 times. (1 USD = 83.9620 Indian rupees)
