Bajaj Housing Finance Ltd made an impressive debut in the stock market on Monday, with its shares listing at a premium of over 114% compared to its issue price. This surge reflects high investor demand, particularly from institutional buyers, and highlights the company's strong financial position. The public offering was primarily conducted to comply with RBI's regulations for non-banking finance companies (NBFCs) to list on exchanges by 2025. Bajaj Housing Finance plans to use the proceeds to strengthen its capital base and continue providing financial solutions for real estate purchases and renovations.

Strong Market Debut for Bajaj Housing Finance Ltd

Shares List at a Premium of 114.28%

Bajaj Housing Finance Ltd made a remarkable entry into the stock market, with shares listed at ₹150, a significant jump from the issue price of ₹70. This marks a premium of 114%, underscoring the high investor interest.

Subsequent Surge in Share Price

Following the listing, shares continued to rise, hitting ₹163.5 on the BSE, reflecting a 132.5% increase. On the NSE, the stock surged 132% to ₹163, showing consistent growth across exchanges.

Impressive Market Valuation and IPO Subscription

Market Valuation Reaches ₹1.3 Lakh Crore

With the stock's sharp rise, Bajaj Housing Finance Ltd’s market valuation soared to ₹1,30,751.90 crore, demonstrating the company’s strong positioning in the financial market.

IPO Receives 63.60 Times Subscription

The initial public offering (IPO) of ₹6,560 crore garnered immense interest from institutional buyers, receiving 63.60 times subscription by September 11, the final day of bidding. The price band for the IPO was set at ₹66-70 per share.

IPO Breakdown and Purpose

Fresh Issue and Offer-for-Sale Components

The IPO included a fresh issue of equity shares worth ₹3,560 crore and an offer-for-sale (OFS) of ₹3,000 crore by Bajaj Finance, the parent company. This structure allowed both capital raising and partial divestment by the parent.

Compliance with RBI Listing Mandate

The share sale was part of compliance with RBI regulations, which require upper-layer NBFCs to be listed on stock exchanges by September 2025. Bajaj Housing Finance Ltd, being categorized as an "upper layer" NBFC, needed to meet this regulatory requirement.

Capital Utilization and Business Focus

Proceeds to Strengthen Capital Base

Bajaj Housing Finance Ltd intends to use the funds raised from the fresh issue to bolster its capital base, preparing the company for future growth and operational expansion in a competitive market.

Provider of Comprehensive Mortgage Solutions

Registered with the National Housing Bank since 2015, Bajaj Housing Finance Ltd offers a wide range of financial services, including home loans, loans against property, lease rental discounting, and developer financing. The company specializes in providing mortgage solutions for both residential and commercial properties.

Stock Market Momentum Amid Broader Index Gains

BSE Sensex and NSE Nifty Hit Record Highs

In a broader market rally, the BSE Sensex surged by 293.4 points to hit a lifetime high of 83,184.34, while the NSE Nifty climbed 89.2 points to reach a new peak of 25,445.70. This overall market momentum further boosted investor confidence in Bajaj Housing Finance Ltd’s listing.