Investors are eagerly awaiting the listing of Bajaj Housing Finance's shares on the stock exchanges, scheduled for Monday, September 16, 2024. The excitement is being fueled by the soaring Grey Market Premium (GMP), which remains above 100% due to overwhelming demand. This robust GMP indicates strong market sentiment and points toward a promising debut for Bajaj Housing Finance on both the BSE and NSE.
According to multiple sources monitoring the grey market, the unlisted shares of Bajaj Housing Finance are trading at a premium of Rs 75, representing a 107% gain over the IPO issue price. Although this is slightly lower than yesterday’s premium of Rs 75, when the IPO allotment was finalized, it remains significantly higher than the Rs 64 premium reported on September 9, 2024, the IPO’s opening day.
The rise of over Rs 10 in the GMP since its opening day reflects strong investor sentiment and confidence in the company’s market potential.
If this grey market momentum continues until Monday, investors could potentially double their money upon the stock's debut. With an anticipated listing price of around Rs 145, based on the current GMP, investors could expect a gain of approximately Rs 75 per share.
The public offering received an overwhelming response, with a subscription rate of 67.4 times, underscoring the high demand for Bajaj Housing Finance's shares. Commenting on this enthusiasm, Shivani Nyati, Head of Wealth at Swastika Investmart, noted:
"The IPO has garnered immense investor interest, evidenced by a sky-high grey market premium. This reflects the company’s strong fundamentals and market anticipation."
She further highlighted that Bajaj Housing Finance has consistently demonstrated growth in both revenue and profit, bolstering investor confidence. Its association with the Bajaj Group, a trusted and credible brand, further adds to its appeal.
Additionally, Nyati pointed out that the IPO valuation appears reasonable, further fueling investor optimism.
"The combination of strong financials, a reputable brand, and immense investor interest positions Bajaj Housing Finance for a potentially successful listing," she added.
Several leading brokerages, including Deven Choksey Research, InCred Equities, Motilal Oswal, and Swastika Investmart, have given positive reviews of Bajaj Housing Finance’s IPO. They lauded the company's solid growth trajectory, market leadership, and attractive valuation.
Bajaj Housing Finance Limited (BHFL), a non-deposit taking Housing Finance Company (HFC), has been specializing in mortgage lending since FY18. It provides customized financial solutions to both individuals and corporate entities for purposes such as the purchase, renovation, and development of residential and commercial properties.
Since September 30, 2022, the Reserve Bank of India (RBI) has classified BHFL as an 'Upper Layer' Non-Banking Financial Company (NBFC-UL). The company operates under the Scale Based Regulations (SBR), introduced by the RBI in October 2021, aimed at enhancing the regulatory framework for NBFCs in India.
GMP: Currently trading at a 107% premium over the issue price, indicating strong market interest.
Expected Listing Price: Around Rs 145 on the BSE and NSE.
IPO Subscription: Received 8.9 million applications, surpassing Tata Technologies' previous record of 7.35 million.
Subscription Rate: 67.4 times, highlighting the massive demand from investors.
Market Sentiment: Strong due to the company’s consistent growth, reliable brand association, and reasonable IPO valuation.
The Bajaj Housing Finance IPO has drawn immense attention from investors, with expectations of a strong listing backed by the high grey market premium and subscription rate. As the company gears up for its listing, market experts believe that Bajaj Housing Finance is well-positioned for long-term growth, making it a promising addition to investor portfolios.