Bajaj Housing Finance IPO Receives Thumping Response On Day 3; Issue Subscribed Over 16.22 Times So Far

Financial services company Bajaj Housing Finance IPO received an upbeat response from investors, amassing issued subscriptions close to 16.22 times on day 3. The company is set to go public on 16 September and is planning to raise ₹ 6,560 cr from the primary market.

As per the data available on the NSE till 11:45 am, the company received bids of over 1,179 cr equity shares against 72.75 cr shares on offer. So far, the IPO has been subscribed 5.42 times in the retail category, whereas Qualified Institutional Investors (QIBs) and Non Institutional Investors (NIIs) have surpassed the subscription by 31.84 times and 25.77 times, respectively.

According to stock market experts, the grey market premium is set at ₹ 70, which totals to ₹ 140 apiece in the concerned market.

Several brokerage houses have expressed a positive outlook on the IPO. BP Equities said, “The issue is valued at a P/BV of 3.8x on the upper price band based on FY24 book value, which is fairly valued. We, therefore, recommend a subscribe rating for the issue on the back of a strong credit underwriting process and risk management framework that helps in mitigating adverse effects on the asset quality.” While recommending a ‘Subscribe’ rating, LKP Securities noted that the stock has superlative return ratios with an ROA/ROE of 2.3%/14.3% for Q1 FY25.

Emkay Global also affirmed “superior growth” and “universal presence in the housing finance space” for the IPO.

With an Asset Under Management (AUM) of ₹ 97,100 cr Bajaj Housing Finance Ltd. has been engaged in mortgage lending since FY18.