Mumbai50 minutes ago
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Today, i.e. 10th September, is the second day of Bajaj Housing Finance’s IPO. This IPO will remain open till 11th September. This IPO has been subscribed 2.94 times on the very first day. Its price band is Rs 66-70 per share.
Bajaj Housing Finance wants to raise Rs 6,560 crore through IPO. The IPO will consist of fresh issuance of shares worth Rs 3,560 crore, while the offer-for-sale will be worth Rs 3,000 crore.
Minimum investment of Rs 14,980 will be required
The company has fixed the price band of this issue at ₹66-₹70. Retail investors can bid for at least one lot i.e. 214 shares. If you apply for 1 lot as per the upper price band of the IPO of ₹70, then you will have to invest ₹14,980 for it.
Bajaj Housing Finance’s premium in the grey market is 91%
Before listing, the company’s stock has reached a premium (GMP) of 91.43% i.e. ₹ 64 per share in the grey market. In such a situation, according to the upper price band of ₹ 70, its listing can happen at ₹ 134. However, this can only be estimated, the price of the listing of the stock is different from the price of the grey market.
Funds will be used to increase lending capacity
The company will use the funds raised from the IPO to increase its capital base, so that funds can be arranged for future business needs. That means the capacity to give loans can be increased.
Company Financials
- Bajaj Housing Finance’s net profit in Q4 was Rs 381 crore. This is a growth of 26% on an annual basis.
- At the same time, the company’s net interest income increased by 11% (YoY) and stood at Rs 629 crore.
- The company’s AUM increased by 32% year-on-year and AUM increased to Rs 91,370 crore.
- At the same time, net total income also increased by 14% (YoY) to Rs 717 crore in Q4.
- The company’s loan disbursal registered an increase of 26% on an annual basis.
What is IPO?
When a company issues its shares to the general public for the first time, it is called Initial Public Offering or IPO. The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.
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