Bajaj Housing Finance IPO: Everything You Need to Know
Excitement is building around the upcoming Bajaj Housing Finance IPO as the company sets its price band and prepares for a significant public offering. Here’s a comprehensive guide to what you need to know about this high-profile IPO, from the price band to key dates and allocations.
Bajaj Housing Finance IPO Price Band and Size
Bajaj Housing Finance Ltd. has announced its IPO price band, setting it between ₹66 to ₹70 per share. This offering aims to raise a substantial ₹6,560 crore. The IPO is set to open on Monday, September 9, 2024, and will close on Wednesday, September 11, 2024.
Market Capitalisation and Offer Details
At the top end of the price range, Bajaj Housing Finance is expected to have a post-issue market capitalisation of ₹58,297 crore. The IPO is structured into two main components:
- Fresh Issue: ₹3,560 crore
- Offer for Sale (OFS): ₹3,000 crore (offered by the parent company, Bajaj Finance)
IPO Allocation Breakdown
The IPO allocation is designed to cater to various investor categories, ensuring broad participation. Here’s how the shares are distributed:
- Qualified Institutional Buyers (QIBs): Nearly ₹2,930 crore or 50% of the total offer is reserved for QIBs. These institutional investors play a crucial role in stabilising the IPO market.
- Non-Institutional Investors (NIIs): ₹879 crore (15% of the IPO) is allocated to NIIs, who typically include high-net-worth individuals and corporate investors.
- Retail Investors: Retail investors are allocated 35% of the issue size, amounting to ₹2,051 crore. This provides a significant opportunity for individual investors to participate in the IPO.
Investment Details for Retail Investors
For retail investors interested in this IPO:
- Minimum Lot Size: 214 shares
- Minimum Investment: ₹14,980
- Subsequent Bids: Can be placed in multiples of 214 shares.
Additionally, ₹200 crore worth of shares are set aside for Bajaj Housing Finance employees, and ₹500 crore for employees of Bajaj Finance and Bajaj Finserv.
Book Running Lead Managers
The IPO will be managed by a team of prominent financial institutions:
- Axis Capital
- Kotak Mahindra Capital
- BofA Securities
- Goldman Sachs
- SBI Capital Markets
- JM Financial
- IIFL Securities
These Book Running Lead Managers (BRLMs) will oversee the process, ensuring a smooth transition from subscription to listing.
Important Dates
- IPO Subscription Period: September 9, 2024, to September 11, 2024
- Share Allotment Date: September 12, 2024
- Listing Date: Expected on September 16, 2024, on both BSE and NSE
Why This IPO Matters
Bajaj Housing Finance’s IPO is significant for several reasons:
- Strong Parentage: As a subsidiary of Bajaj Finance, the company benefits from its robust reputation and financial stability.
- Market Capitalisation: With a substantial post-issue market cap, Bajaj Housing Finance is poised to be a major player in the housing finance sector.
- Investor Opportunities: The diverse allocation structure ensures opportunities for a wide range of investors, from institutional to retail.
How to Prepare for the IPO
If you’re considering investing in the Bajaj Housing Finance IPO, here are a few tips:
- Research: Understand the company’s financial health and market position.
- Consult a Financial Advisor: Get personalised advice based on your investment goals and risk tolerance.
- Check Allotment Status: After the subscription period ends, keep track of the allotment status to know if you’ve been allocated shares.
Conclusion
The Bajaj Housing Finance IPO is a highly anticipated event in the financial market. With its attractive price band, substantial offer size, and significant allocation for retail investors, it presents a promising opportunity. Be sure to mark the important dates and prepare accordingly to make the most of this IPO.
