Bajaj Housing Finance IPO Day 3: Check latest GMP, subscription status, should you apply, other key details on last day

Bajaj Housing Finance IPO: The initial public offering (IPO) of Bajaj Housing Finance has been receiving strong demand and the issue is heavily oversubscribed. Bajaj Housing Finance IPO opened for subscription on September 9 and closes today, September 11.

Bajaj Housing Finance is a non-deposit taking housing financing company that provides mortgage loans and is a wholly owned subsidiary of Bajaj Finance. The company aims to raise ₹6,560 crore from the primary market which it intends to utilize for augmenting the capital base to meet future business requirements towards onward lending.

Bajaj Housing Finance IPO is a combination of fresh issue of 50.86 crore equity shares worth ₹3,560 crore and offer for sale (OFS) of 42.86 crore shares worth ₹3,000 crore. The shares are sold at a price band of ₹66 to ₹70 per share.

Bajaj Housing Finance IPO allotment is expected to be finalized on Thursday, September 12, and the IPO listing date is September 16. Bajaj Housing Finance shares will be listed on both the stock exchanges, BSE and NSE.

Let us check Bajaj Housing Finance IPO GMP today, subscription status and analysts review on the last day of the bidding process.

Bajaj Housing Finance IPO Subscription Status

Bajaj Housing Finance IPO has been subscribed 16.22 times so far on Wednesday, the third and the last day of the bidding process. The public issue received bids for over 1,179 crore equity shares as against 72.75 crore shares on the offer, according to data available on NSE till 11:55 am.

The IPO has been subscribed 5.42 times in the retail category, 31.84 times in Qualified Institutional Buyers (QIBs) category, and 25.77 times in the Non Institutional Investors (NII( category so far.

Bajaj Housing Finance IPO GMP Today

Bajaj Housing Finance shares are trading with a strong premium in the unlisted market. Bajaj Housing Finance IPO GMP today, or grey market premium today, is ₹70 per share, according to stock market observers.

This indicates that Bajaj Housing Finance shares are trading at ₹140 apiece in the grey market, a premium of 100% to the issue price of ₹70 per share.

Bajaj Housing Finance IPO: Should you apply?

Bajaj Housing Finance Ltd. is the largest non-deposit-taking HFC promoted by Bajaj Finance Ltd. and has been engaged in mortgage lending since FY18, with an AUM of ₹97,100 crore as of Q1FY25. The company’s AUM has grown at a CAGR of 30.9% between FY22 and FY24.

This growth trajectory positions the company as the fourth fastest growing NBFC within the upper-layer category (as per RBI) in India.

“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 which helps in mitigating adverse effects on the asset quality,” BP Equities said.

LKP Securities noted that at the higher price band of ₹70, Bajaj Housing Finance stock valued at 3.72x 1QFY25 P/BVPS. Factoring the superlative return ratios, i.e. ROA/ROE of 2.3%/14.3% 1QFY25, it believes that Bajaj Housing Finance is worth subscribing. Thus it recommended ‘Subscribe’ to Bajaj Housing Finance IPO.

Emkay Global Financial Services said that Bajaj Housing Finance is valued at pre-money June 2024 P/B of 3.7x and post-money June 2024 P/B of 3.2x for Q1FY25 annualized ROE of 14.3% versus peers (Jun-24 P/BV, ROE), such as LIC Housing Finance (1.3x, 16%), PNB Housing Finance (1.8x, 11.4%), and Can Fin Homes (2.7x, 17.6%).

“Compared with peer valuations, its superior growth, universal presence in the housing finance space, and its group and management pedigree enable Bajaj Housing Finance to command a premium valuation. Against this backdrop, the BHFL IPO looks attractively valued,” Emkay Global said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.