Bajaj Housing Finance IPO will open today, Know the Important Details before placing a bet
Bajaj Housing Finance Limited’s IPO will open for subscription on Monday i.e. 9 September. The company has fixed a price band of Rs. 66-70 per equity share for its issue.
The IPO of non-banking finance company (NBFC) Bajaj Finance Limited is opening on 9 September. This company of Bajaj Group now wants to go public by raising funds of Rs. 6560 crore. The company has raised Rs. 1758 crore from anchor investors on 5 September.
Bajaj Housing Finance IPO Details
Bajaj Housing Finance will issue a fresh issue (new shares) of Rs. 3560 crore under its IPO and will raise Rs. 3,000 crore through OFS (Offer for Sale).
Bajaj Housing Finance has fixed the price band for its IPO (Bajaj Finance IPO Price band) at Rs. 66 to Rs. 70 per share. About 50% of the issue is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 35% for retail investors.
Bajaj Housing Finance IPO GMP
Bajaj Housing Finance’s IPO is indicating a strong listing in the gray market. The company’s GMP is running at Rs. 53 on September 8. This shows that Bajaj Finance shares can be listed in the market at Rs. 123, which is 75.71 percent higher than the IPO price band of Rs. 70.
What does Bajaj Housing Finance do?
Bajaj Finance is the parent company of Bajaj Housing Finance. Bajaj Finance was registered with the National Housing Bank as an NBFC in September 2015. The company provides loans for buying and renovating residential and commercial properties.
It has been identified as an ‘upper layer’ NBFC by the RBI in India and it provides home loans, property loans, loans for lease rented property and loans to developers. As of March 31, 2024 (FY24), the company had a customer base of 308,693. Of this, 81.7% were home loan customers. The company has 215 branches in 174 locations across 20 states and three union territories (UTs).
What will Bajaj Housing Finance do with the IPO funds?
Let us tell you that Bajaj Housing is selling shares to comply with the rules of the Reserve Bank of India (RBI). Under the RBI rules, the upper layer NBFC is required to be listed on the stock exchanges by September 2025.
Bajaj Housing will use the funds raised from the IPO i.e. new issue to meet future capital requirements. In simple words, Bajaj Finance will strengthen the capital base with the money raised through the IPO.
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