Bajaj Housing Finance Share Price & IPO Listing Highlights September 16, 2024: Bajaj Housing Finance shares surge 10% after market debut at a 114% premium

Bajaj Housing Finance stock closed 10% on the NSE at ₹165, and 9.99% on t he BSE at ₹164.99.

Shares of Bajaj Housing Finance traded at ₹165 on the NSE, higher by 10%.

Bajaj Housing Finance Ltd.’s shares more than doubled in their trading debut after India’s biggest new listing of the year, reflecting a surge of local enthusiasm toward initial public offerings that continue to fuel concern about gush of liquidity pushing up valuations. 

Shares of the home-loan unit of India’s largest shadow lender climbed as much as 136% to 165 rupees versus an offer price of 70 rupees, set for the best ever first-day gains for IPOs that raised more than $500 million. The company’s 65.6-billion rupee ($781 million) IPO drew bids of over $39 billion last week.

India has been a bright spot globally for capital raising, with investors drawn to first-day gains of more than 30% on average this year. A study by the market regulator published this month showed that most retail investors end up selling their half of their holdings in IPOs within a week, underscoring the frenzy that is making authorities nervous. 

“Domestic investors are looking for IPO investments as this segment has some valuation comfort versus other parts of the market that remain overheated,” said Pranav Bhavsar, a co-founder of Trudence Capital Advisors Pvt. “The market is flushed with liquidity.”

The buoyant demand from local retail investors and institutions have led to new listings in India raising $8.6 billion in 2024, exceeding proceeds for each of the last two years, data compiled by Bloomberg show. The rush has been driven in part by the rich valuations for listed stocks that are among the world’s priciest. 

Bajaj Housing’s IPO debut is also benefiting from its parent’s strong brand recall and a history of stellar returns. Bajaj Finance, part of India’s oldest conglomerates, is straddles all segments of financial services, and has also forayed into asset management. The company’s shares have returned about 40% annually over the past 10 years, more than double the NSE Nifty 50 Index.

“The group has a proven track record of wealth creation,” Bhavsar said. “They have come out with a public offering after a long gap, a factor investors had in mind while bidding” despite the higher valuation compared with peers, he said.

Bajaj Housing also enjoys access to low-cost funds due to its strong parentage, which gives it an edge over peers, Mumbai-based brokerage Sharekhan said in a note before the IPO. “The company continues to outperform the industry in the last five years with a ~29% CAGR and the growth outlook remains strong.”

The company’s shares held the initial advance, joining the other large listings in India this year that have built on their first-day gains. Last month, Ola Electric Mobility Ltd. raised more than $730 million, and baby-products retailer Brainbees Solutions Ltd. garnered about $500 million. Shares of both companies are trading more than 35% above their issue prices.

More major IPOs are expected — Hyundai Motor Co. will likely raise as much as $3.5 billion from the listing of its Indian unit in the coming months, Bloomberg News reported in July. South Korea’s LG Electronics Inc. has picked banks for a potential IPO of its Indian business that could raise as much as $1.5 billion, according to people familiar with the matter.

Separately, Indian food-delivery platform Swiggy Ltd. is also said to be considering filing publicly for a listing as soon as this week, according to people familiar with the matter, who added that the firm may seek to raise more than $1 billion.

Bajaj Housing’s IPO included sale of new shares worth as much as 35.6 billion rupees, while founder Bajaj Finance offered shares worth 30 billion rupees. The IPO was managed by Kotak Mahindra Capital Co., Bank of America Corp, Axis Capital Ltd., Goldman Sachs Group, SBI Capital Markets Ltd., JM Financial Ltd. and IIFL Securities Ltd. 

Bloomberg

Bajaj Housing Finance stock continues to trade at ₹165 on the NSE, higher by 10% as at 2.15 pm. 

On the BSE, the stock surged 9.99% to ₹164.99.

Shares of Bajaj Housing Finance Ltd made a solid market debut on Monday, listing with a huge premium of 114.28 per cent, against the issue price of Rs 70.

The stock got listed at Rs 150 on both the BSE and NSE, reflecting a jump of 114.28 per cent from the issue price.

Later, it zoomed 129.88 per cent to Rs 160.92 on the BSE.

At the NSE, shares of the firm surged 130 per cent to Rs 161.

The company’s market valuation stood at Rs 1,30,751.90 crore.

(Inputs from PTI)

The Rs 6,560-crore Bajaj Housing Finance initial public offer of Bajaj Housing Finance Ltd received 63.60 times subscription on September 11, the last day of bidding, amid overwhelming participation from institutional buyers.

The initial share sale had a price band for the offer at Rs 66-70 per share.

The IPO had a fresh issue of equity shares of up to Rs 3,560 crore and an offer-for-sale (OFS) of equity shares to the tune of Rs 3,000 crore by parent Bajaj Finance.

In the equity market, the 30-share BSE Sensex climbed 293.4 points to reach a fresh lifetime high of 83,184.34. The NSE Nifty jumped 89.2 points to hit a new record peak of 25,445.70.

The share sale was conducted to comply with the Reserve Bank of India’s (RBI) regulations, which require upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.

Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.

It is a non-deposit-taking housing finance company registered with the National Housing Bank in September 2015.

The firm offers financial solutions for purchasing and renovating residential and commercial properties.

It has been identified and categorised as an “upper layer” NBFC by the RBI in India and its comprehensive mortgage products include home loans, loans against property, lease rental discounting and developer financing.

(inputs from PTI)

(NSE data)

Bajaj Housing Finance stock rallied 9.53% to trade at ₹164.30 on the NSE as at 12 noon. 

On the BSE, the stock was up 9.61% to ₹164.42.

Bajaj Housing Finance stock trades 5.80% higher on the NSE at ₹158.70 as at 11.12 am.

Bajaj Housing Finance shares made a spectacular debut on the bourses, listing at a premium of 2.14 times its issue price of ₹70 on BSE.

The shares are currently trading at ₹159.01 apiece, up about 127 per cent over the issue price.

The housing finance company raised ₹6,560 crore via an IPO, comprising a net public issue of ₹4,802 crore and an anchor investor portion of ₹1,758 crore.

The IPO received an overwhelming response, with 88.94 lakh applications from investors, aggregating ₹3.24 lakh crore at the upper end of the price band (₹66-70).

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Bajaj Housing Finance stock surged to hit ₹160.92 on the BSE, and ₹161 on the NSE after its market debut.

Bajaj Housing Finance stock surged 4.99% on the NSE, trading at ₹157.49 as at 10.22 am.

Bajaj Housing Finance shares were listed on the NSE and BSE at ₹150 each, against the issue price of ₹70.

Bajaj Housing Finance Ltd.’s shares are set to begin trading on Monday following an initial public offering that was oversubscribed by more than 60 times.

The unit of India’s largest shadow lender, whose IPO raised ₹65.6 billion ($781 million) in the nation’s biggest deal so far this year, drew bids exceeding $39 billion last week. That’s more than 1 per cent of the country’s gross domestic product. Shares were sold at ₹70 each. Trading begins at 10 am in Mumbai.

The stellar response underscores the strong appetite for first-time share sales in India, a bright spot globally for capital raising, as investors see businesses booming in the world’s fastest-growing major economy. Helped by buoyant demand retail investors, new listings in the South Asian nation have raised $8.6 billion in 2024, exceeding proceeds for each of the last two years, data compiled by Bloomberg show.

Investors have been drawn to first-day gains, which have averaged about 30 per cent this year.

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