Bajaj Housing Finance IPO GMP zooms over 100%: Investors eye windfall gains
Source: Business Standard
Baja Housing Finance IPO listing price prediction: As investors eagerly await the listing of Baja Housing Finance shares on the stock exchanges, scheduled for Monday, September 16, 2024, the grey market premium (GMP) of the public issue continues to remain above 100 per cent due to overwhelming demand among investors. This sustained GMP also reflects the high level of interest, and enthusiasm among investors, setting the stage for a strong post-listing performance.
Bajaj Housing Finance IPO, which ended for subscription on Wednesday, September 11, 2024, received a whopping 8.9 million applications, eclipsing the previous record of 7.35 million set by Tata Technologies. The allotment of Bajaj Housing Finance IPO was finalised yesterday.
According to several sources that track grey market activities, the unlisted shares of Bajaj Housing Finance are currently trading at a premium of approximately Rs 75, representing a 107 per cent gain over the IPO issue price. This indicates robust listing sentiments for the company’s shares. Although today’s grey market premium is marginally lower than yesterday’s Rs 75, when the IPO allotment was finalised, it remains significantly higher than the Rs 64 reported on September 9, 2024, the IPO’s opening day, with a notable increase of over Rs 10.
Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted, IPO has garnered immense investor interest, evidenced by a subscription rate of 67.4 times and a sky-high grey market premium. She believes that this enthusiasm reflects the company’s strong fundamentals and market anticipation. Bajaj Housing Finance has demonstrated consistent growth in both revenue and profit, showcasing favorable financial metrics. The company’s association with the Bajaj Group lends credibility and trust. Moreover, the IPO’s valuation appears reasonable, further fueling investor optimism.
She added, “the combination of strong financials, a reputable brand, and immense investor interest positions Bajaj Housing Finance for a potentially successful listing.”
About Bajaj Housing Finance
Bajaj Housing Finance Limited (BHFL), a non-deposit taking Housing Finance Company (HFC), has been specialising in mortgage lending since FY18. Classified as an ‘Upper Layer’ Non-Banking Financial Company (NBFC-UL) by the Reserve Bank of India (RBI) since September 30, 2022, BHFL operates under the ‘Scale Based Regulations (SBR): A Revised Regulatory Framework for NBFCs’ introduced on October 22, 2021. The company provides customised financial solutions to individuals, and corporate entities for the purchase, renovation, and development of residential and commercial properties.
First Published: Sep 13 2024 | 12:28 PM IST
