Summary
- Bajaj Housing Finance IPO fully subscribed on day 1 of bidding
- Bajaj pedigree, home loan demand boosting interest, analysts say
- Bajaj Housing Finance IPO runs Sep 9-11
- 16 IPOs open for subscription this week
- 200 companies have raised more than $7 bln via IPOs this year
BENGALURU, Sept 9 – Bajaj Housing Finance’s $782 million public offer was fully subscribed on the first day of bidding on Monday, kicking off the busiest week for Indian IPOs so far this year as companies seek to capitalise on a booming stock market amid a retail investor frenzy.
This week alone, IPOs of 16 companies open for subscription, including Bajaj Housing Finance’s smaller peer Sammaan Capital.
“The IPO market is driven by a bullish secondary market where we are seeing an extended rally,” Pranav Haldea, managing director of capital market information provider Prime Database Group, said.
“Sentiment is positive on the back of a strong Indian economy and a huge gush of liquidity from domestic institutional and individual investors. This year is on track to be the best IPO year in India.”
India’s benchmark Nifty 50 index (.NSEI), opens new tab has gained about 15% in 2024, as domestic institutional investors have pumped in nearly $38 billion, offsetting selling by foreign investors. Systematic investment plan contributions in mutual funds have hit record highs for 13 straight months.
Bajaj Housing Finance’s (BAJO.NS), opens new tab float, one of India’s largest offerings this year, is set to make the firm the country’s most valuable listed home loan provider at a valuation of around $7 billion.
Non-institutional investors bid for more than twice the shares reserved for them by 2:03 p.m. IST on Monday, exchange data showed. Retail investors bid for about 99% of the shares earmarked for them.
The shares are being offered in a 66-70 rupee band. The IPO will close on Wednesday.
The company, a unit of non-bank lender Bajaj Finance (BJFN.NS), opens new tab, has already raised about $209 million from major institutional investors including the government of Singapore, BlackRock (BLK.N), opens new tab and Abu Dhabi Investment Authority.
Bajaj Housing Finance stands to benefit from India’s rising home prices, driven by demand for luxury properties, which forms a major part of its business.
Its “strong pedigree” will attract investor interest, Kranthi Bathini, equity strategist at WealthMills Securities, said.
“We are seeing a 76-77% grey market premium for the IPO,” Arun Kejriwal, founder of Kejriwal Research, said.
“Amid high demand for home loans, more builders are entering the luxury segment rather than affordable because there is more money in that business.”
Reporting by Dimpal Gulwani and Varun Hebbalalu in Bengaluru, Additional reporting by Bharath Rajeswaran; Editing by Mrigank Dhaniwala
