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There is more to the overwhelming investor response to Bajaj Housing Finance IPO than the current IPO euphoria. The shares of the company listed on the exchanges with a premium of 114% on Monday.
Bajaj Housing Finance's IPO set several records, with the issue being subscribed 64 times on the final day of bidding and attracting bids amounting to nearly ₹3.23 lakh crore, the highest-ever demand in Indian primary market history. The previous record was held by Coal India, the ₹15,500 crore public issue of which got bids totalling ₹2.36 lakh crore in October 2010. The IPO set a new record also by receiving 8.9 million applications, surpassing the previous record of 7.36 million held by Tata .technologies.
Besides the IPO euphoria, the response was driven by factors such as strong parentage, reasonable valuations and the future growth prospects. The Bajaj Group, which houses some of India's most valued companies, has been a consistent wealth creator for its loyal investor base. Its legacy is built on consistent returns and strong fundamentals, earning a reputation of delivering long-term value. Bajaj Housing Finance is being seen as another Bajaj brand set for stellar growth.
Bajaj Housing Finance has shown rapid growth since it started mortgage operation in 2018 with a high asset quality and stable net interest margin (NIM) despite intense competition. The company looks poised to take advantage of the growing mortgage penetration in the country
