Bajaj Housing Finance Debuts at 114% Premium Over Issue Price in IPO
Shares of Bajaj Housing Finance made a scintillating debut in the stock markets with its stock listing at 114 percent premium over the IPO issue price. The pre-listing indicative price on NSE and BSE is at Rs 150 per share, which has given out a bright signal on the debut in the market.
Bajaj Housing Finance was one of the most-awaited IPOs this year, the second-biggest home loan financier in India in terms of assets under management. Last week, the company attracted bids worth an impressive $38.60 billion, which reflects the high interest investor sentiments carry for the stock.
During the pre-IPO period, the shares are trading at a grey market premium (GMP) of 120% over the issue price. Such IPO of Rs 6,560 crore was subscribed to nearly 67 times, meaning significant demand for the company’s equity shares.
The company intends to use the proceeds from the IPO for future business requirements pertaining primarily to onward lending, perfectly aligning with its growth strategy.
Bajaj Housing Finance is one of those companies that, according to market analysts, should be seen as an investment for the medium to long term. The good thing about this company’s growth prospects is that the participation of its management is strong in the housing finance sector, and valuation looks pretty competitive with peers. Since the company part of a very sound group, more solidity has now added to its position in the market.
