Bajaj Housing Finance IPO surpasses Tata Tech’s record with bids exceeding Rs 3.2 Lakh Crore

India IPO

Updated Sep 12, 2024

The proceeds will be used to strengthen the company’s capital base, particularly for future lending activities.

Bajaj Housing Finance IPO surpasses Tata Tech’s record with bids exceeding Rs 3.2 Lakh Crore

The Bajaj Housing Finance IPO has set a new milestone by garnering bids exceeding Rs 3.2 lakh crore, surpassing the previous record held by Tata Technologies. Bajaj Housing Finance aimed to raise around Rs 6,560 crore through a combination of fresh equity issuance and an Offer for Sale (OFS). The IPO was oversubscribed 63.6 times, with non-institutional investors showing exceptional interest, subscribing over 200 times.

This significant achievement comes despite the presence of three other IPOs in the market—Kross, Tolins, and PN Gadgil.

Previously, Tata Technologies held the record for the highest IPO bids, having attracted over Rs 1.5 lakh crore for its Rs 3,000 crore offering. Tata Technologies, the first Tata Group company to go public in nearly two decades, set its IPO price band at Rs 475-500 per share, with the shares debuting at Rs 1,200 on the NSE, a 140% premium over the issue price.

Bajaj Housing Finance’s shares are currently trading at a grey market premium of Rs 67-69, indicating a 96% premium over the issue price, reflecting strong market interest. Before the IPO launch, Bajaj Housing Finance raised Rs 1,758 crore from leading anchor investors like JP Morgan, Morgan Stanley, Nomura, and HDFC Mutual Fund. The proceeds will be used to strengthen the company’s capital base, particularly for future lending activities.

For the fiscal year 2023-24, Bajaj Housing Finance reported a net profit of Rs 1,731 crore, marking a 38% increase from Rs 1,258 crore in the previous fiscal year. Additionally, the company’s net income grew by 34% year-on-year, reaching Rs 7,618 crore.

Bajaj Housing Finance, a non-deposit-taking Housing Finance Company registered with the National Housing Bank since September 2015, offers a range of financial solutions for purchasing and renovating properties. Recognized as an upper-layer Non-Banking Financial Company (NBFC) by the Reserve Bank of India (RBI), the company’s portfolio includes home loans, loans against property, lease rental discounting, and developer financing, catering to both individual homebuyers and large developers.