close_game
close_game

Why Bajaj Housing Finance IPO- India's biggest in 2024- got $39 billion in bids

Bloomberg |
Sep 12, 2024 11:32 AM IST

Institutional bids for Bajaj Housing's shares exceeded 200 times the allocation, reflecting strong market demand.

The home-loan unit of India’s largest shadow lender drew a blockbuster response for its share-sale debut, highlighting continued investor exuberance over listings in the nation.

Bajaj Housing Finance's IPO draws massive investor interest, raising $781 million.
Bajaj Housing Finance's IPO draws massive investor interest, raising $781 million.

Bajaj Housing Finance Ltd., which sought to raise 65.6 billion rupees ($781 million) in the nation’s biggest public offering of 2024, attracted bids for about $39 billion on the last day of the sale on Wednesday. That’s more than 1% of the country’s gross domestic product for the fiscal year ended 2024. 

Institutional investors drove the frenzied demand, with bids exceeding 200 times the shares set aside for them. Retail category was over-subscribed seven times. The demand surpassed that of Tata Technologies’ blockbuster IPO last year.

India has been bustling with debuts, with $7.75 billion raised in listings so far this year. That exceeds the proceeds in each of the past two years, according to data compiled by Bloomberg. Investors have been chasing the first day gain, which has averaged about 30% this year. 

Bigger sales are on the horizon — Hyundai Motor Co. will likely raise as much as $3.5 billion from the listing of its Indian unit in the coming months, Bloomberg News reported in July.

Bajaj Housing company aims to raise as much as 35.6 billion rupees via new shares, while founder Bajaj Finance offered up to 30 billion rupees of shares in the sale. On Sept. 6, anchor investors, including Government of Singapore, Goldman Sachs and JPMorgan India subscribed to 251.14 million shares worth 17.6 billion rupees at 70 rupees each.

Stay updated with the...
See more
Stay updated with the latest Business News on Petrol Price, Gold Rate, Income Tax Calculator along with Breaking News Events and Latest News Updates on Hindustan Times.
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Sunday, October 13, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On