Bajaj Housing Finance's $782 mln float kicks off busy week for Indian IPOs (updated)

Bharti Hexacom

09/09/2024 08:42

* 
      Bajaj Housing Finance IPO runs Sep. 9 to 11
    

        * 
      Bajaj pedigree, home loan demand boosting interest,
analysts say
    

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      16 IPOs open for subscription this week
    

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      200 companies have raised more than $7 bln via IPOs this
year
    

  
 (Recasts throughout, adds details on Indian IPO market, analyst
comments)
    By Dimpal Gulwani and VarunVyas Hebbalalu
       BENGALURU, Sept 9 (Reuters) - Bajaj Housing Finance's
$782 million public offer opened on Monday, kicking off the
busiest week for Indian IPOs so far this year as companies seek
to capitalise on a booming stock market amid a retail investor
frenzy.
    India's stock market has hit record highs over 50 times this
year and has seen about 200 companies raise more than $7 billion
through IPOs, including high-profile offerings from EV-maker Ola
Electric Mobility  OLAE.NS  and telecom operator Bharti Hexacom
 BHAX.NS .
    This week alone, IPOs of 16 companies open for subscription,
including Bajaj Housing Finance's smaller peer Sammaan Capital.
    "The IPO market is driven by a bullish secondary market
where we are seeing an extended rally," Pranav Haldea, managing
director of capital market information provider Prime Database
Group, said.
    "Sentiment is positive on the back of a strong Indian
economy and a huge gush of liquidity from domestic institutional
and individual investors. This year is on track to be the best
IPO year in India." 
    India's benchmark Nifty 50 index  .NSEI  has gained about
15% in 2024, as domestic institutional investors have pumped in
nearly $38 billion, offsetting selling by foreign investors.
Systematic investment plan contributions in mutual funds have
hit record highs for 13 straight months.
    Bajaj Housing Finance's  BAJO.NS  float, one of India's
largest offerings this year, is set to make the firm the
country's most valuable listed home loan provider at a valuation
of around $7 billion. 
    The IPO will close on Wednesday and shares are being offered
in a 66-70 rupee band.
    The company, a unit of non-bank lender Bajaj Finance
 BJFN.NS , has already raised about $209 million from major
institutional investors including the government of Singapore,
BlackRock  BLK.N  and Abu Dhabi Investment Authority.
    Bajaj Housing Finance stands to benefit from India's rising
home prices, driven by demand for luxury properties, which forms
a major part of its business.
    Its "strong pedigree" will attract investor interest,
Kranthi Bathini, equity strategist at WealthMills Securities,
said.
    "We are seeing a 76-77% grey market premium for the IPO,"
Arun Kejriwal, founder of Kejriwal Research, said. 
    "Amid high demand for home loans, more builders are entering
the luxury segment rather than affordable because there is more
money in that business."

 (Reporting by Dimpal Gulwani and Varun Hebbalalu in Bengaluru,
Additional reporting by Bharath Rajeswaran; Editing by Mrigank
Dhaniwala)
 ((Dimpal.Gulwani@thomsonreuters.com;))