India's Bajaj Housing Finance IPO opens to public after raising $209 mln from big institutions

Housing and Urban Development

09/09/2024 05:48

BENGALURU, Sept 9 (Reuters) - Bajaj Housing Finance's
 BAJO.NS  IPO, one of India's largest offerings this year, opens
for public subscription on Monday after raising about $209
million from major institutional investors, with analysts
predicting strong interest amid booming demand for home loans.
    The $782 million IPO, which will make the company India's
most valuable listed home loan provider at a valuation of around
$7 billion, will close on Wednesday. Shares are being issued in
a price band of 66 rupees to 70 rupees apiece. 
    Bajaj Housing Finance is expected to benefit from rising
home prices, driven by demand for luxury properties, which form
a dominant part of its business.
    In the IPO, Bajaj Housing Finance is issuing new shares
worth $424 million, while parent Bajaj Finance  BJFN.NS  is
selling shares worth $357 million.
    India's booming stock market has seen about 200 companies
raise more than $7 billion through IPOs so far this year,
including high-profile offerings from Ola Electric Mobility
 OLAE.NS  and Bharti Hexacom  BHAX.NS , according to data from
LSEG. 
    "With the primary markets doing well, Bajaj Housing Finance
with a strong pedigree is definitely going to attract the
interest of investors," said Kranthi Bathini, equity strategist,
WealthMills Securities.
    Bajaj Housing Finance's IPO has been subscribed by large
investors such as the government of Singapore, BlackRock  BLK.N 
and Abu Dhabi Investment Authority, who were allotted shares at
the upper end of the price band in the so-called anchor book,
the lender said late on Friday. 
    Anchor investors are high-profile institutional investors
that are allotted shares before the subscription opens for
retail and other investors, and have to commit to holding their
shares for a certain period after listing.
    India's mutual funds picked up shares worth about $75
million, the lender said.
    
  
($1 = 83.9690 Indian rupees)

 (Reporting by Dimpal Gulwani in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Dimpal.Gulwani@thomsonreuters.com;))