'Bajaj Housing Finance IPO: Historic Response, Allotment Status & GMP Insights'

Bajaj Housing Finance has made history by becoming the first Indian IPO to attract bids worth over ₹3.24 lakh crore, an unprecedented milestone in the country’s capital market. The company received bids for a staggering 46.28 billion equity shares, marking it as one of the most oversubscribed IPOs in Indian history. Investors are now eagerly awaiting the final allotment of shares, set to be announced on Thursday, September 12.

During the three-day bidding period, which ran from September 9 to September 11, the IPO was subscribed a whopping 63.61 times overall. The issue received a particularly strong response from Qualified Institutional Buyers (QIBs), with the QIB portion being subscribed an extraordinary 209.36 times. Non-Institutional Investors (NIIs) also showed great interest, with their portion being subscribed 41.51 times. Meanwhile, the portions reserved for shareholders, retail investors, and employees were subscribed 17.53 times, 7.04 times, and 2.05 times, respectively. This robust demand underscores the strong confidence in Bajaj Housing Finance’s long-term potential.

The IPO, priced between ₹66 and ₹70 per share, consisted of both a fresh issue and an offer for sale. Bajaj Housing Finance raised a total of ₹6,560 crore through the offering, with ₹3,560 crore coming from the fresh issue and ₹3,000 crore through the offer for sale by its parent company, Bajaj Finance.

With the final allotment set to be announced, investors can easily check their status online. The allotment status will be available on the Bombay Stock Exchange (BSE) website and through the official registrar, KFin Technologies. Investors can visit the BSE allotment page, select "Bajaj Housing Finance Ltd" under the issue name, and provide their application number, PAN card ID, and other details to see if they have received any shares. Alternatively, they can visit the KFin Technologies website, where they can check the allotment status using their application or Demat account number.

One key factor driving investor optimism is the strong Grey Market Premium (GMP) for Bajaj Housing Finance’s shares. The GMP surged after the IPO's record-breaking bidding phase, with the latest figures showing a premium of ₹75 per share. This suggests a potential listing gain of around 104%, making it an attractive opportunity for those lucky enough to receive an allotment. However, while GMP is often a good indicator of market sentiment, it is not a guaranteed predictor of actual listing day performance.

Bajaj Housing Finance is a part of the prestigious Bajaj Group and has been a registered non-deposit-taking housing finance company since 2015. The company has shown solid growth in its loan portfolio, offering mortgage loans since 2018. Analysts have been largely bullish on the issue, citing the company’s solid parentage, strong market share, and promising growth potential in India’s expanding housing finance sector.

While the company’s asset concentration and exposure to the real estate sector are concerns, most brokerages have recommended subscribing for the long term, given Bajaj Housing Finance’s reasonable cost of funds and strong growth trajectory. The company’s shares are expected to be listed on both BSE and NSE on Monday, September 16, which investors are watching closely for strong listing gains.