Bajaj Housing Finance IPO Day Subscription: The IPO of Bajaj Housing Finance, one of the country’s leading housing finance companies, is getting a good response from investors today on the second day, 10 September. This IPO has been subscribed 5.70 times or 570 percent till 3 pm on the second day. At the same time, its premium is continuously increasing in the gray market, which indicates that the money will almost double on listing itself. This IPO has also received good ratings from brokerage houses and experts.
Bajaj Housing Finance’s IPO will remain open till September 11. The size of the IPO is Rs 6560 crore. While the company has fixed the price band for the IPO as Rs 66-70/share. The IPO has a fresh issue of Rs 3560 crore and an OFS of Rs 3000 crore. The company’s shares will be listed on BSE and NSE on September 16.
SBI Alert! Why did the brokerage change its mood on SBI stock, gave it a Sell rating, the price may fall to Rs 742
Bajaj Housing Finance : Subscription Status
Bajaj Housing Finance’s IPO has been subscribed 5.60 times till 3 pm on the second day, September 10. 50 percent of the IPO is reserved for qualified institutional buyers (QIB) and it has been subscribed 2.77 times so far. While 35 percent is reserved for retail investors and it has been subscribed 83 percent so far. At the same time, 15 percent is reserved for non-institutional investors (NII) and it has been subscribed 13.79 times so far. The quota for employees has been kept at 5% (maximum) of ‘post offer paid up equity share capital’. This share has been subscribed 8.12 times so far.
PN Gadgil Jewellers IPO: Jewellery company’s stock can give high returns, advice to subscribe to IPO
GMP reached 86%
There is a tremendous craze in the grey market regarding Bajaj Housing Finance. The unlisted stock of the company is seen at a premium of Rs 60 in the grey market. This is an 86 per cent premium in terms of the upper price band of Rs 70. This indicates that the listing of the stock may happen at an 86 per cent premium.
Deven Choksey Research : Subscribe
Brokerage house Deven Choksey Research has given a subscribe rating to the IPO. According to the report, Bajaj Housing Finance’s price-to-book value multiple at the upper price band is 3.2x for the post-IPO book value of Rs 21.9 per share by June 30, 2024, which is reasonable compared to peers. The average price-to-book value for the industry is 3.0x. The brokerage house is positive on the company’s outlook due to the company’s substantial brand equity, strategic business expansion plan, wide geographic coverage and advanced technological infrastructure. According to the brokerage, these factors are expected to improve operational efficiency and maintain favorable credit costs supported by better asset quality.
Vodafone Idea Alert: Vodafone Idea stock expected to fall by 81%, new target is Rs 2.5, have you invested
BP Equities : Subscribe
According to the brokerage house, the company has shown strong performance by strategically focusing on increasing direct home loan origination and increasing the average ticket size across its product group. These products have contributed to the improvement in the OPEX/Asset ratio in recent years. In addition, strategic changes in AUM and product mix have mitigated the adverse effects of rising funding costs on portfolio spreads. The issue is valued at a P/BV of 3.8x at the upper price band based on the book value of FY24, which looks fair. Therefore, one can subscribe to the IPO based on a strong credit underwriting process and risk management framework.
(Disclaimer: The views or advice on the stock are given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
