Bajaj Housing Finance IPO: Bajaj Housing Finance‘s much awaited ₹6,560-crore initial share-sale will open for public subscription on September 9 and conclude on September 11.
The purpose of the share sale is to fulfill the Reserve Bank of India’s (RBI) mandate that by September 2025, upper layer non-banking financial organisations (NBFCs) must be listed on stock markets.
₹1,758 crore From Anchor Investors
Notably, just days ahead of this initial public offering (IPO), on September 5 the company said it has collected ₹1,758 crore from anchor investors, PTI reported.
These anchor investors include the Government of Singapore, the Abu Dhabi Investment Authority (ADIA), Fidelity, Morgan Stanley, Nomura, Goldman Sachs, JP Morgan India Investment Trust Plc, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, HDFC Mutual Fund (MF), Kotak Mahindra MF, SBI MF, UTI MF and Nippon India MF, the report added.
The company has allotted 25.11 crore equity shares to 104 funds at ₹70 each (upper-end of the price band), taking the aggregate transaction size to ₹1,758 crore.
Here Are the Top 10 Updates
- Bajaj Housing Finance’s ₹6,560 crore IPO will open for public subscription on September 9 and conclude on September 11.
- The price band has been fixed at ₹66 to ₹70 per share for the public issue.
- The proposed IPO comprises a fresh issue of equity shares of up to ₹3,560 crore and an offer-for-sale (OFS) of equity shares to the tune of ₹3,000 crore by parent Bajaj Finance.
- Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.
- Housing Finance IPO GMP: Shares are available in the grey market. Stock market observers says, shares of the Bajaj Group NBFC are available at a premium of ₹55 in the grey market on September 7.
- Observers said Bajaj Housing Finance shares were available at a premium of ₹42 in the grey market ahead of the RHP filing, indicating that Bajaj Housing Finance IPO GMP has risen from ₹42 to ₹55 after the RHP filing, which is around 79 per cent higher than the upper price band of Bajaj Housing Finance IPO.
- In June, Bajaj Housing Finance filed preliminary papers with Sebi for a ₹7,000 crore IPO, comprising fresh shares worth ₹4,000 crore and an OFS component of ₹3,000 crore by its parent. The market regulator gave its clearance to the company’s maiden public issue earlier this month.
- Kotak Mahindra Capital Company, BofA Securities India, SBI Capital Markets, Goldman Sachs (India) Securities and JM Financial are the book running lead managers that will manage the company’s public issue.
- Those who held Bajaj Finance or Bajaj Finserv shares on the Bajaj Housing Finance IPO RHP filing date can apply under the Bajaj Housing Finance IPO shareholder quota.
- Bajaj Housing Finance IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
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