Bajaj Housing Finance IPO: GMP signals bumper listing on Monday
What's the story
Bajaj Housing Finance is set to make its stock market debut on Monday, September 16.
The share allotment for the company's initial public offering (IPO) has been finalized and successful investors have been notified.
These shares will soon be credited to their respective demat accounts while those who were not allotted any shares will receive refunds in the coming days.
Investors can check their allotment status on the BSE or KFin Technologies websites.
Market expectations
Bajaj Housing Finance IPO: Anticipated listing gains and GMP
The market is anticipating significant listing gains for Bajaj Housing Finance shares.
The gray market premium (GMP) suggests that investors could potentially double their investment on the day of listing.
The current GMP remains robust at ₹80.5, indicating a potential listing price of ₹150.5 per share considering the upper end of the IPO price band and the current premium in the gray market.
At this price, investors will record a bumper 115% gain on their investment.
Company performance
Bajaj Housing Finance IPO: Financial growth and market valuation
Rajan Shinde from Mehta Equities highlighted Bajaj Housing Finance's strong financial performance, noting a substantial growth in revenue from operations—50.4% in FY2023 and 34.5% in FY2024—and net profit growth of 77.2% in FY2023 and 37.6% in FY2024.
At the upper price band of ₹70, the issue is seeking a market cap of ₹58,297 crore based on annualized earnings for FY2025 and fully diluted post-IPO paid-up capital.
Investor participation
Bajaj Housing Finance IPO: Record-breaking bids and institutional interest
The IPO of Bajaj Housing Finance attracted bids worth an unprecedented ₹3.2 lakh crore, marking it as the first Indian IPO to cross ₹3 lakh crore in bids.
The majority of this interest came from institutional investors with the QIB portion alone seeing bids worth more than ₹2.60 lakh crore for the 17.75 million shares allocated to them.