The Rs 6,560 crore initial public offering (IPO) of Bajaj Housing Finance was fully subscribed within hours of opening for bidding on September 9. The IPO received bids for 73.02 crore shares against 72.75 crore shares on offer, reflecting full subscription as of 14:03 hours on the National Stock Exchange (NSE).
Subscription Breakdown
- Non-Institutional Investors: 2.29 times subscription
- Retail Individual Investors (RIIs): 97% subscription
- Qualified Institutional Buyers (QIBs): 2% subscription
The IPO includes a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of shares worth Rs 3,000 crore by Bajaj Finance, the parent company. The price band for the IPO is set at Rs 66-70 per share, and the offering will close on September 11.
Anchor Investors and Capital Use
Bajaj Housing Finance raised Rs 1,758 crore from anchor investors prior to the IPO. The proceeds from the fresh issue will be used to strengthen the company’s capital base and meet future capital requirements.
Regulatory Compliance and Market Context
This IPO is part of Bajaj Housing Finance's compliance with the Reserve Bank of India's (RBI) regulations, which mandate that upper-layer non-banking finance companies (NBFCs) be listed on stock exchanges by September 2025. Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank, offers a variety of mortgage solutions, including home loans, loans against property, and developer financing.
Lead Managers
The IPO is being managed by Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt Ltd, Axis Capital, and JM Financial Ltd.
With this IPO, Bajaj Housing Finance joins the ranks of other housing finance companies like Aadhar Housing Finance and India Shelter Finance, which have recently gone public.