Bajaj Housing Finance IPO Listing on Monday: GMP Signals Huge Listing Gains

The listing of Bajaj Housing Finance’s shares is set to take place on Monday, September 16. The IPO listing on Monday is expected to provide huge listing gains up to 120 per cent to investors in just a day as indicated by the latest grey market premium (GMP). According to market observers, Bajaj Housing Finance’s unlisted shares are currently trading at Rs 154 in the grey market, which is a 120 per cent premium.The share allotment of the Bajaj Housing Finance IPO has already been finalised. Investors can check the allotment status on the websites of BSE and NSE as well as on the portal of registrar Kfin Technologies.The Bajaj Housing Finance IPO, which was opened for public subscription between September 9 and September 11, received a whopping 67.43 times subscription garnering bids for 46,25,57,71,082 shares as against the 68,60,00,009 shares on offer. The price band of the Rs 6,560-crore much-awaited intial public offering was fixed at Rs 66 to Rs 70 per share.Bajaj Housing Finance IPO: How to Check Allotment Status?As the IPO allotment has been finalised, the status can be checked by following these steps:1) Go to the official BSE website via the URL —https://www.bseindia.com/investors/appli_check.aspx.2) Under ‘Issue Type’, select ‘Equity’.3) Under ‘Issue Name’, select ‘Bajaj Housing Finance Ltd’ in the dropbox.4) Enter your application number, or the Permanent Account Number (PAN).5) Then, click on the ‘I am not a robot’ to verify yourself and hit ‘Search’ option.Your share application status will appear on your screen.You can also visit direct Kfin Technologies portal — https://ris.kfintech.com/ipostatus/ and check the Bajaj Housing Finance IPO allotment status.Bajaj Housing Finance IPO: GMP TodayAccording to market observers, unlisted shares of Bajaj Housing Finance Ltd are trading Rs 84 higher in the grey market than its issue price. The Rs 84 grey market premium or GMP means the grey market is expecting a 120 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.Bajaj Housing Finance IPO: More DetailsThe proposed IPO comprises a fresh issue of equity shares of up to Rs 3,560 crore and an offer-for-sale (OFS) of equity shares to the tune of Rs 3,000 crore by parent Bajaj Finance.The share sale is being conducted 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.The company collected Rs 1,758 crore from anchor investors ahead of its IPO. Among the anchor investors are Government of Singapore, Abu Dhabi Investment Authority, Fidelity, Morgan Stanley, Nomura, Goldman Sachs, JP Morgan India Investment Trust Plc, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, HDFC Mutual Fund (MF), Kotak Mahindra MF, SBI MF, UTI MF and Nippon India MF.Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.Bajaj Housing Finance is a non-deposit taking Housing Finance Company registered with the National Housing Bank since September 2015. It offers financial solutions for purchasing and renovating residential and commercial properties.It has been identified and categorized as an “upper layer” NBFC by the RBI in India and its comprehensive mortgage products include home loans, loans against property, lease rental discounting and developer financing.For the entire financial year 2023-24 , the housing lender posted a net profit of Rs 1,731 crore, marking a growth of 38 per cent from Rs 1,258 crore in FY23.Aadhar Housing Finance and India Shelter Finance are two housing finance companies that have listed on the stock exchanges in recent months.In June, Bajaj Housing Finance filed preliminary papers with Sebi for a Rs 7,000 crore IPO, comprising fresh shares worth Rs 4,000 crore and an OFS component of Rs 3,000 crore by its parent. The market regulator gave its clearance to the company’s maiden public issue earlier this month.Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd and JM Financial Ltd are the book running lead managers that will manage the company’s public issue.