Bajaj Housing Finance’s Rs. 6,560-crore IPO shatters records 

The excitement around Bajaj Housing Finance’s initial public offering (IPO) has reached a fever pitch, setting new benchmarks in India’s primary market. As the Rs. 6,560-crore IPO wrapped up on Wednesday, it had attracted a staggering 89 lakh investors eager to buy shares in the company.   

The IPO’s popularity led to an unprecedented demand surge, with a whopping Rs. 3.2 lakh crore worth of bids, oversubscribed by more than 67 times when you exclude anchor investors. This level of interest and the sheer volume of applications have set new records for India’s primary market, according to data from Axis Capital, one of the key managers of the IPO.  

Breaking down the numbers, the institutional segment was oversubscribed 222 times, while high net worth individuals (HNIs) showed a massive appetite with a 44-fold subscription. Shares reserved for Bajaj Finance and Bajaj Finserv shareholders were snapped up 17.4 times, and the retail investor portion saw more than seven times the demand. Even the employee allocation was more than twice oversubscribed.  

The IPO, which kicked off on September 9, saw shares offered in the price band of Rs. 66 to 70 per share, excluding the Rs. 1,758 crore allotted to anchor investors ahead of the official opening. On the very first day, the offer was already twice subscribed, and by the end of Day 2, it had more than seven times the demand which is a remarkable trend given the current frenzy in the market. 

Reflecting on the remarkable journey of Bajaj Finance and Bajaj Finserv over the past decade, their stock values have soared impressively. Bajaj Finance’s shares have skyrocketed 28 times, while Bajaj Finserv’s have increased 17 times, all while consistently delivering dividends each year. This IPO is not just a milestone for Bajaj Housing Finance but also a testament to the dynamic and vibrant nature of India’s financial markets.