Bajaj Housing Finance IPO Fully Subscribed on Opening Day

Bajaj Housing Finance IPO Fully Subscribed on Opening Day

Bajaj Housing Finance IPO Fully Subscribed on Opening Day

The Rs 6,560 crore initial public offering (IPO) of Bajaj Housing Finance was fully subscribed within hours of opening for bidding on September 9. The IPO received bids for 73.02 crore shares against 72.75 crore shares on offer, reflecting full subscription as of 14:03 hours on the National Stock Exchange (NSE).

Subscription Breakdown

- Non-Institutional Investors: 2.29 times subscription
- Retail Individual Investors (RIIs): 97% subscription
- Qualified Institutional Buyers (QIBs): 2% subscription

The IPO includes a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of shares worth Rs 3,000 crore by Bajaj Finance, the parent company. The price band for the IPO is set at Rs 66-70 per share, and the offering will close on September 11.

Anchor Investors and Capital Use

Bajaj Housing Finance raised Rs 1,758 crore from anchor investors prior to the IPO. The proceeds from the fresh issue will be used to strengthen the company’s capital base and meet future capital requirements.

Regulatory Compliance and Market Context

This IPO is part of Bajaj Housing Finance's compliance with the Reserve Bank of India's (RBI) regulations, which mandate that upper-layer non-banking finance companies (NBFCs) be listed on stock exchanges by September 2025. Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank, offers a variety of mortgage solutions, including home loans, loans against property, and developer financing.

Lead Managers

The IPO is being managed by Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt Ltd, Axis Capital, and JM Financial Ltd.

With this IPO, Bajaj Housing Finance joins the ranks of other housing finance companies like Aadhar Housing Finance and India Shelter Finance, which have recently gone public.

About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

LinkedIn - https://www.linkedin.com/in/sandeepsadhmpe/