Bajaj Housing Finance IPO now open, GMP signals blockbuster listing
What's the story
Bajaj Housing Finance Ltd. (BHFL) has launched its initial public offering (IPO) today, aiming to raise ₹6,560 crore. The subscription period for this significant financial event will run until Wednesday, September 11. Prior to the IPO launch, BHFL successfully raised ₹1,758 crore through its anchor book. The list of anchor investors includes prominent entities such as the Government of Singapore and ADIA among others.
IPO specifics
BHFL's IPO details and future plans
The price band for BHFL's IPO has been set at ₹66-70 per share, with investors able to apply for a minimum of 214 equity shares in one lot. The minimum investment amount comes to ₹14,124. The company aims to raise ₹6,560 crore through this offer, which includes a fresh share sale of ₹3,560 crore and an offer-for-sale (OFS) of ₹3,000 crore. The proceeds from the issue will be used to augment the company's capital base for future business requirements.
Investor backing
BHFL's IPO garners support from major investors
BHFL's initial public offering has attracted significant interest from major investors. These include Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, and JP Morgan. The company's strong parentage, top-tier credit rating and impressive management team have been highlighted as key strengths by Emkay Global. The brokerage firm also noted that these factors firmly position BHFL in the structurally-attractive housing finance space. At the time of writing, the GMP for the issue stood at ₹56.71, translating to a premium of 81%.
Endorsements
Brokerage firms endorse BHFL's IPO
Emkay Global has endorsed the Bajaj Housing Finance IPO as attractively valued, citing its superior growth and universal presence in the housing finance space. SBI Securities also expressed a positive outlook for the company, stating that it is well placed to capitalize on the growth in this sector. IDBI Capital and InCred Equities have both recommended a 'Subscribe' rating to the IPO for long-term investment.