Bajaj Housing Finance Launches Rs 6,560 Crore IPO, Opens for Subscription Today
The highly anticipated IPO of Bajaj Housing Finance, worth Rs 6,560 crore, opens for public subscription today, September 9, with investors eagerly awaiting strong listing gains, as indicated by the grey market premium (GMP). On Friday, September 6, the company raised Rs 1,758 crore from anchor investors. This follows similar recent public listings of housing finance companies like Aadhar Housing Finance and India Shelter Finance.
The IPO window will close on September 11, with a price band set between Rs 66 and Rs 70 per share. Bajaj Housing Finance plans to utilize the funds from the fresh issue, amounting to Rs 3,560 crore, to strengthen its capital base for future needs. The remaining Rs 3,000 crore will be part of an offer-for-sale (OFS) by parent company Bajaj Finance.
The shares are reportedly commanding a grey market premium of Rs 50-51 per share, reflecting an impressive 70% premium, according to multiple tracking platforms. This suggests strong investor demand in the unregulated market.
The decision to list Bajaj Housing Finance is driven by compliance with Reserve Bank of India (RBI) regulations. These rules require upper-layer non-banking finance companies (NBFCs) to be listed on stock exchanges by September 2025. Bajaj Housing Finance, a non-deposit-taking NBFC, has been registered with the National Housing Bank since 2015 and offers a variety of financial solutions, including home loans, loans against property, and developer financing.
Classified as an “upper layer” NBFC by the RBI, Bajaj Housing Finance reported a strong financial performance for FY 2023-24, with a net profit of Rs 1,731 crore—marking a 38% increase from Rs 1,258 crore in the previous year.
The IPO, initially filed with SEBI in June, sought to raise Rs 7,000 crore, including Rs 4,000 crore in fresh shares and Rs 3,000 crore through OFS. SEBI approved the IPO earlier this month, and the company’s shares are set to be listed on September 16.
