Bajaj Housing Finance's IPO Sees Rapid Full Subscription

Bajaj Housing Finance's Rs 6,560-crore IPO saw swift full subscription within hours of opening. Bids reached 73,02,58,736 shares against 72,75,75,756 on offer, a one-time subscription. Funds from the fresh issue will be used to boost the capital base. The offering includes a fresh issue of Rs 3,560 crore and OFS of Rs 3,000 crore.

Bajaj Housing Finance's Rs 6,560-crore initial public offer (IPO) achieved full subscription swiftly within hours of its market opening on Monday. According to the NSE, the IPO received bids for 73,02,58,736 shares compared to 72,75,75,756 shares on offer by 14:03 hours, indicating a one-time subscription.

The segment for non-institutional investors drew 2.29 times subscription, while Retail Individual Investors (RIIs) received 97 percent subscription. Qualified Institutional Buyers (QIBs) saw a 2 percent subscription rate.

Bajaj Housing Finance had previously announced that it collected Rs 1,758 crore from anchor investors ahead of the IPO. Concluding on September 11, the price band for the shares has been set at Rs 66-70 each.

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

Conducted to comply with RBI regulations, which mandate listing for upper-layer non-banking finance companies by September 2025, the proceeds from the fresh issue will help to fortify the company's capital base for future needs.

Registered as a non-deposit-taking housing finance entity with the National Housing Bank since September 2015, Bajaj Housing Finance provides financial solutions for residential and commercial property purchases and renovations. It is categorized as an ''upper layer'' non-banking financial company by the RBI.

In recent months, Aadhar Housing Finance and India Shelter Finance have also been listed on stock exchanges. Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, Axis Capital, and JM Financial Ltd are the lead managers for this public issue.

(With inputs from agencies.)