Bajaj Housing Finance IPO

Bajaj Housing Finance IPO: GMP Surges After Subscription Date Announcement | Shareholder Quota & Key Details

Bajaj Housing Finance Limited is set to launch its Initial Public Offering (IPO) on September 9, 2024, marking a significant event in the Indian financial market. The IPO will be open for subscription from September 9th to September 11th, 2024, with the basis of allotment scheduled for September 12th, 2024. Refunds will be initiated on September 13th, 2024, and shares are expected to be credited to the Demat accounts on the same day. The company’s shares are anticipated to be listed on September 16th, 2024.

Key Details of the Bajaj Housing Finance IPO

IPO Open Date: Monday, September 9, 2024
IPO Close Date: Wednesday, September 11, 2024
Basis of Allotment: Thursday, September 12, 2024
Initiation of Refunds: Friday, September 13, 2024
Credit of Shares to Demat: Friday, September 13, 2024
Listing Date: Monday, September 16, 2024
Cut-off Time for UPI Mandate Confirmation: 5 PM on September 11, 2024

Grey Market Premium (GMP)

The grey market premium (GMP) for Bajaj Housing Finance IPO has seen a significant increase following the announcement of the subscription dates. As of today, the GMP stands at ₹61, reflecting a rise from ₹56 the previous day and ₹42 two days prior. This 45% increase in the GMP over two days indicates strong market sentiment and investor interest in the IPO, even before the official price band announcement.

Shareholder Quota

Investors who held shares of Bajaj Finance or Bajaj Finserv as of the end of trading last Friday are eligible to apply for the Bajaj Housing Finance IPO under the shareholders’ quota. According to SEBI regulations, shareholders of the parent company at the time of the RHP filing are eligible to participate in the subsidiary’s IPO under this quota.

IPO Structure and Financial Goals

Bajaj Housing Finance aims to raise ₹6,560 crore through this IPO. The public issue will include a combination of fresh shares and an Offer for Sale (OFS). Specifically, the company plans to raise ₹3,560 crore through fresh share issuance, while the remaining ₹3,000 crore is set aside for the OFS. The funds generated will likely be used to enhance the company’s capital base and support its business operations and expansion plans.

Market Expectations

With the strong GMP and positive market sentiment, the Bajaj Housing Finance IPO is expected to attract substantial interest from investors. The market’s anticipation of further increases in the GMP following the announcement of the price band underscores the strong demand for the IPO. The company’s solid reputation and the parent company’s robust performance add to the appeal, making this IPO a significant event in the financial calendar.

Conclusion

The Bajaj Housing Finance IPO is generating significant interest in the market, reflected by the rising Grey Market Premium (GMP). Investors are optimistic about the company’s growth potential, supported by the solid reputation of its parent companies, Bajaj Finance and Bajaj Finserv. The structure of the IPO, including the mix of fresh shares and the Offer for Sale (OFS), suggests a strategic approach to capital generation. Eligible shareholders of Bajaj Finance and Bajaj Finserv can participate under the shareholders’ quota, further enhancing the appeal of this public offering. Overall, this IPO presents a promising opportunity for investors looking to capitalize on the company’s expansion in the financial sector.

FAQs

What is the Bajaj Housing Finance IPO?

The Bajaj Housing Finance IPO is an Initial Public Offering set to launch on September 9, 2024. The company aims to raise ₹6,560 crore through a combination of fresh shares and an Offer for Sale (OFS).

What are the key dates for the Bajaj Housing Finance IPO?

The IPO will open on September 9, 2024, and close on September 11, 2024. The basis of allotment is expected on September 12, 2024, with refunds initiated on September 13, 2024. Shares will be credited to Demat accounts on September 13, 2024, and the listing is scheduled for September 16, 2024.

What is the Grey Market Premium (GMP) for Bajaj Housing Finance IPO?

As of the latest update, the GMP for Bajaj Housing Finance IPO is ₹61, reflecting a significant increase from ₹42 over the past two days.

Who is eligible to apply under the shareholders’ quota?

Investors who held shares of Bajaj Finance or Bajaj Finserv as of the end of trading on the last Friday are eligible to apply under the shareholders’ quota.

How much capital does Bajaj Housing Finance aim to raise through this IPO?

Bajaj Housing Finance plans to raise ₹6,560 crore, with ₹3,560 crore coming from fresh share issuance and ₹3,000 crore from the Offer for Sale (OFS).

What will the funds raised from the IPO be used for?

The funds are expected to be used to enhance the company’s capital base, support business operations, and facilitate future expansion plans.

What is the significance of the rising GMP for this IPO?

The rising GMP indicates strong investor interest and positive market sentiment towards the IPO, suggesting that the shares may perform well upon listing.