Bajaj Housing Finance IPO oversubscribed in the middle of a busy week

The subscription period for the Bajaj Housing Finance IPO runs from September 9 to September 11, 2024. The business intends to raise around 6,560 crores, with this offering, comprising a fresh share sale of 3,560 crore plus an offer over sale (OFS) of 3,000 crore. The price range for the shares is ₹66-₹70, with an initial bidding of 214 shares per lot.

Before diving more into Bajaj Housing Finance IPO let’s see what Bajaj Housing Finance is;

What exactly is Bajaj housing finance?

Bajaj Housing Finance Limited, an affiliate of the renowned Bajaj FinServ, is one of India’s significant housing finance firms. The organization was founded to meet the increasing demand for housing loans and now offers a wide range of financial products, like home loans, loans against property, and developers’ financing. Bajaj Housing Finance with a strong brand recognition, and a customer-centric strategy, has established itself as a prominent participant in the housing finance business.

Financial Uplift for Bajaj Housing Finance IPO

Bajaj Housing Finance’s mammoth Rs 6,560-crore IPO, which began bidding on Monday, September 9, was completely subscribed in less than four hours. HNIs, or non-institutional affluent investors, as well as retail quotas, have already exceeded their reserved allocation.

Bajaj Housing Finance received a hefty Rs 1,758 crore through key investors on Friday. The Rs 6,560 crore initial share sale will end on September 11.

According to NSE data, the IPO got bids for more than 1,46,58,24,030 shares, compared to the 72,75,75,756 shares offered.

Bajaj Housing Finance reported a net gain of ₹1,731 crore for fiscal year 2023-24, up 38% over the previous year. The business’s overall return on its net worth (RoNW) is 15.2%, showing effective management of resources and a strong basis for future growth.

Why You Should Think of Investing in Bajaj Housing Finance IPO?

• Strong brand backing: Becoming affiliated with the Bajaj Group, which is among India’s most respected conglomerates, instills trust in investors. The brand’s reputation and trustworthiness contribute significantly to the IPO.
• Market Potential: Increasing housing demand, government efforts, and increased urbanization are all driving growth in the housing finance industry. Bajaj Housing Finance IPO has the potential to benefit from these trends. Ahead of the IPO, shares traded at a Grey Market Premium (GMP) of ₹52, indicating a possible 73% upside over the issue price. The substantial supply in the grey market implies positive investor optimism.
• Diversified Product Offerings: The company’s variety of financial solutions serves the needs of individual and business consumers, offering stability and potential growth

Now let’s talk about another hot topic

Kross Limited IPO GMP oversubscribed by 60%

 What should you look out for in Kross Limited’s IPO?

Kross Limited is now officially opening its doors to investors through an initial public offering (IPO), which promises to be an exciting prospect in the fast-paced stock market. Kross is making headlines on September 9, 2024, not only with its IPO but also with its remarkable grey market premium (GMP).

Let’s dive deep into what Kross Limited is about, the current state of its IPO, and the reasons why it’s creating so much interest.

Before diving into the current state let’s see what Kross Limited is:

Kross Limited, established in 1991 and headquartered in Jamshedpur, specializes in producing outstanding performance, safety-sensitive components for large and medium-sized commercial automobiles as well as agricultural machinery. The company has proven itself as a major participant in the automotive components sector, specializing in trailer axles and suspension assemblies. Kross has a strong reputation with large clients such as Ashok Leyland and Tata International DLT, because of its diversified product line and commitment to innovation.

Kross limited IPO and subscription details

The Kross Limited IPO plans to raise 500 crores through an additional issuance of equity shares worth 250 crore with an offer for sale (OFS) of 250 crore by the founders. The shares are priced around ₹228 and ₹240, which makes them accessible to a wide variety of investors. The subscription period began on the 9th and will end on the 11th, with stocks likely being listed on the 16 in the BSE and NSE

As of the very initial day of bidding, Kross Limited’s IPO had attracted roughly 34% subscription. Retail investors have expressed great interest, with 67% subscribing by launch time. However, the group of qualified institutional buyers (QIB) category has shown less interest, gathering just 4% of bids.

The hype around the grey market of Kross Limited

One of the most intriguing parts of Kross Limited’s IPO is the grey market premium (GMP). Kross’ unlisted shares currently trade at an upward premium of approximately ₹48, representing a 20% potentially listed gain from the IPO’s top price band. This GMP suggests that investors are bullish on Kross’s performance once it joins the stock market. A strong GMP is frequently indicative of substantial demand and a favorable attitude among traders, which might speak favorably for the company’s upcoming growth.

Should you invest now? Views of analysts on Subscription

Trading firms are mostly positive about the Kross IPO. Many people have advocated investing in the offering or citing the company’s robust development trajectory and solid financial performance. For example, SBI Securities has stated that Kross’ financial characteristics, particularly an average compound annual growth rate (CAGR) of 44.4% in revenues from FY22 to FY24, make it an appealing long-term investment. likewise, Deven Choksey Research underlined Kross’ dedication to innovation and positioning itself strategically in a rising sector.

As the duration of the subscription progresses, it will be intriguing to see how demand evolves and whether or not the optimism expressed within the GMP converts into a successful marketplace debut.

Those who are interested should monitor subscription rates as well as market developments within the next few days. The Kross IPO might be a springboard in the world of investment that is profitable, particularly for individuals interested in diversifying their investment portfolios in an unpredictable market.

Enjoy investing but keep your eyes, ears, and mind open

Best of luck’’

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The text is written by Kashaf Muhammad