Bajaj Housing lists at 114% premium, market cap at Rs 1.37 lakh crore

This is the fourth finance company from the Bajaj stable to be listed on the exchanges. Bajaj Finance has a market capitalisation of Rs 4.54 lakh crore, Bajaj Finserv Rs 2.96 lakh crore and Bajaj Holdings and Investment Rs 1.16 lakh crore.

The Rs 6,560-crore initial public offering of Bajaj Housing, which closed on last Wednesday, received a huge investor response with 88.94 lakh applications from investors worth Rs. 3.24 lakh crore, the highest amount received for any IPO at the upper end of the price band.

The net public offer was at Rs 4,802 crore and anchor investor quota at Rs 1,758 crore. The issue was oversubscribed 63.61 times.

The company expects a steady credit growth at 12-15 per cent in the housing industry, said Sanjiv Bajaj, Chairperson of Bajaj Finserv and Bajaj Finance, adding, “the economy is showing very strong tailwinds and that’s what gives us the comfort.”

“Bajaj Housing Finance has experienced a remarkable growth rate of 30-32 per cent CAGR over the past year. It holds the largest share in the prime housing segment, accounting for over 20 per cent. Additionally, it enjoys an 85 per cent share of the salaried employees’ loan portfolio. Looking ahead, Bajaj Housing anticipates maintaining a similar growth rate of around 30-35 per cent YoY,” said Nipun Lodha, Director – Corporate Finance, Prabhudas Lilladher.

“We believe housing as a sector will continue to deliver and perform well in the next 3-4 years and Bajaj Housing can tap the opportunity to lead the sector,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Nearly a dozen companies are set to raise approximately Rs 20,000 crore through initial public offerings from the market in September.

According to a note by Pantomath Capital Advisors, the outlook for the Indian IPO market remains promising, with domestic companies projected to raise over Rs 1.50 lakh crore through primary issuances in the next 12 months, signaling continued activity and strong investor interest ahead.

The IPO fund raising in August hit an all-time high since May 2022, the note said. In the past few months, IPOs in the small and medium enterprises (SME) space have seen a lot of traction.