Investors lapped up the ₹6,560-crore initial public offering (IPO) of Bajaj Housing Finance with the shares subscribed more than two times on the first day.
The IPO was fully subscribed within hours of its opening — an indication of the demand for good quality businesses and the abundant liquidity available in the investing community. Another factor is the grey market premium, which stands at ₹55.
The initial share sale will conclude on September 11 at a price band of ₹66-70.
The IPO comprises a fresh issue of equity shares up to ₹3,560 crore and an offer for sale of ₹3,000 crore by parent Bajaj Finance.
The sale is meant to comply with the Reserve Bank of India’s (RBI) regulations, which require upper-layer non-banking finance companies to be listed on stock exchanges by September 2025. Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.
Data from the stock exchanges showed bids for 146.7 crore shares against 72.75 crore shares on offer, a 2.02 times subscription.
The portion for non-institutional investor saw 4.35 times subscription, while the quota for retail individual investors (RIIs) was subscribed 1.51 times. The segment for qualified institutional buyers received a 1.07 times subscription. Bajaj Housing Finance on Friday said it has collected ₹1,758 crore from anchor investors.
Incred Equities, which recommended investors to subscribe to the IPO, said the NBFC is focused on prime salaried customers. It offers competitive yields, which have placed the company on a par with banks even as it enjoys an edge over smaller players.
However, with the cost of funds being relatively expensive to banks, the margin profile of BHFL is relatively weak.
Its assets under management are diverse — a mix of superior yield loans against property, lease rental discounting and developer loans — that offers them room to manage yields.
Ather plan
Ather Energy, the electric two-wheeler maker, has filed draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO).
The offer will be a combination of a fresh issue of
equity shares of ₹3,100 crore and an offer for sale (OFS) of 2.2 crore equity shares by promoters and investor shareholders.
According to the draft red herring prospectus (DRHP), the sellers include Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, 3State Ventures Pte Ltd, IITM Incubation Cell and IITMS Rural Technology and Business Incubator.
Proceeds from the fresh issue will be used for capital expenditure to establish an electric two-wheeler factory in Maharashtra, investment in research and development, marketing initiatives, repayment of loan and for general corporate purposes.
Ather Energy is the second pure play EV firm to go public after Ola Electric Mobility, which had come out with a ₹6,145-crore initial public offer last month.
