Bajaj Housing Finance IPO Opens Today: Street Eyes 70% Listing Gains; Check GMP, Details for Rs 6,560-Cr Issue

Bajaj Housing Finance IPO Opens: Key Details

* The initial public offering (IPO) of Bajaj Housing Finance, a subsidiary of Bajaj Finserv, opens for subscription today, February 1. * The company plans to raise Rs 6,560 crore through the IPO, which will be entirely an offer for sale (OFS) by Bajaj Finserv. * The price band for the IPO has been fixed at Rs 3,150-3,240 per share. * The IPO will close on February 3.

Bajaj Housing Finance IPO: GMP and Expected Listing Gains

* The gray market premium (GMP) for Bajaj Housing Finance IPO is currently around Rs 600-650, indicating a listing gain of around 20-25%. * Analysts expect the IPO to be subscribed 10-15 times, with strong demand from both institutional and retail investors. * The company's strong financials and track record are expected to attract investors.

Bajaj Housing Finance IPO: Company Overview

* Bajaj Housing Finance is a leading housing finance company in India, with a loan book of over Rs 50,000 crore. * The company offers a range of home loan products, including loans for purchase, construction, and renovation. * Bajaj Housing Finance has a strong presence in both urban and rural areas, and has a network of over 1,400 branches and 50,000 distribution partners.

Bajaj Housing Finance IPO: Financials and Valuation

* Bajaj Housing Finance reported a net profit of Rs 2,036 crore in the first nine months of FY23, a growth of 44% over the same period last year. * The company's loan book grew by 20% during the same period. * The company's book value per share is around Rs 1,900, which means that the IPO is priced at a premium of around 70% to its book value.

Bajaj Housing Finance IPO: Risk Factors

* The company's loan book is concentrated in the housing sector, which is cyclical in nature. * The company faces competition from a number of other housing finance companies, including HDFC and LIC Housing Finance. * The company's growth could be impacted by rising interest rates.