Bajaj Housing IPO: GMP drops ahead of stock listing today; is it still a multibagger in the making?

Bajaj Housing Finance IPO was open for bidding between September 9-11, with shares offered in the price band of Rs 66-70 per share with a lot size of 214 shares.
Shares of Bajaj Housing Finance are set to hit Dalal Street on Monday, September 16. The issue saw historic investor interest during the three-day bidding process, and is likely to be a multibagger listing on the stock markets. However, its premium has declined in the informal market recently.
The grey market premium (GMP) on Bajaj Housing Finance shares before listing was Rs 73-75 per share, indicating a 104-105 per cent upside for investors on listing. However, the grey market premium was earlier at Rs 84 per share after historic bidding for the issue.

Bajaj Housing Finance’s IPO was open for bidding between September 9 to 11. The Pune-based company offered its shares in a price band of Rs 66 to 70 per share with a lot size of 214 shares. The company inflation Rs 6,560 crore through its primary offering, which included fresh share sale of Rs 3,560 crore and an offer for sale of Rs 3,000 crore by Bajaj Finance.
The issue received good bidding and was subscribed 63.61 times overall. The quota for qualified institutional bidders was booked 209.36 times. The quota for non-institutional investors was subscribed 41.51 times. The portion reserved for shareholders, employees and retail investors received bids of 17.53 times, 2.05 times and 7.04 times, respectively.

Bajaj Housing Finance became the first Indian IPO to receive bids worth Rs 3 lakh crore. The company received bids for 46,28,35,82,522 equity shares valued at Rs 3.24 lakh crore. The QIB portion alone received bids for 37,17,70,59,692 shares worth over Rs 2.60 lakh crore against 17,75,75,756 shares offered for this category.

Incorporated in 2008, Bajaj Housing Finance is a non-deposit taking housing finance company (HFC) registered with the National Housing Bank (NHB) since 2015 and has been offering mortgage loans since FY 2018. It is part of the Bajaj Group, a multifarious group of companies with interests in various sectors.
Brokerages were mostly positive on the issue, suggesting investors to subscribe to it for the long term, citing its solid parentage, strong market share, inflation AUM, reasonable cost of funds and solid growth prospects. However, asset concentration and risk remain the main concerns for the real estate company.

BofA Securities India, Axis Capital, Kotak Mahindra Capital Company, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities were the book running lead managers to the Bajaj Housing Finance IPO, while KFin Technologies acted as the registrar to the issue. The company’s shares will be listed on both NSE and BSE.