BENGALURU, Sept 9 (Askume) – Bajaj Housing Finance’s $782 million public issue was nearly twice as subscribed on the first day of bidding on Monday, kicking off the busiest week for Indian IPOs so far this year as more companies seek opportunities to capitalise on a surging stock market.
The Indian stock market has hit record highs more than 50 times this year, with nearly 200 companies raising more than $7 billion through IPOs, including electric vehicle maker Ola Electric Mobility (OLAE.NS) and telecom operator Bharti.
This week alone, IPOs of 16 companies were open for subscription, including Bajaj Housing Finance’s smaller rival Samman Capital.
Pranav Haldea, managing director, Prime Database Group, a capital markets information provider, said: “The IPO market is driven by a bullish secondary market, and we see that the bullish sentiment continues to extend into the secondary market.
“Market sentiment is positive due to the strong Indian economy and large liquidity flows from domestic institutional and individual investors. This year is expected to be India’s best IPO year.”
India’s benchmark Nifty 50 index (.NSEI) rose nearly 15% in 2024, with domestic institutional investors pumping in nearly $38 billion, offsetting selling by foreign investors. Inflows from systematic investment plans to mutual funds have hit a record high for 13 consecutive months.
The debt offering from Bajaj Housing Finance (BAJO.NS) , one of India’s biggest issuances this year, will make the company the country’s most valuable listed home loan provider with a valuation of about $7 billion.
Exchange data shows that as of 5 pm, non-institutional investors were bidding for more than four times their reserved shares. Retail investors bid for 1.5 times the shares allotted to them.
Ashutosh Mishra, Head of Research, Ashika Stock Broking, said investor confidence was reflected in the full subscription on Day 1, reflecting the long-standing excitement for the Bajaj Group IPO.
The shares were issued at Rs 66-70. The IPO will close on Wednesday.
The company, a unit of non-bank lender Bajaj Finance (BJFN.NS) , has raised about $209 million from leading institutional investors including the Singapore government, BlackRock (BLK.N) and Abu Dhabi Investment Authority.
Bajaj Housing Finance will benefit from rising home prices in India, as demand for luxury properties is a key component of its business.
Arun Kejriwal, founder of Kejriwal Research, said, “Amidst the huge demand for home loans, more and more builders are entering the luxury loan segment instead of affordable loans as more money can be made in this business.”
