MUMBAI: The initial public offering (IPO) of Bajaj Housing Finance, a subsidiary of Bajaj Finance, has witnessed an unprecedented level of investor interest, with the issue being overall subscribed 63.61 times, net of anchor book. The IPO, which aimed to raise around Rs 6,560 crore, received bids worth a staggering over Rs 3.24 lakh crore from investors, setting a new record in the Indian primary market.  This is the highest-ever number of bids for an IPO in India, surpassing previous records set by Coal India in 2010 which received bids worth Rs 2.36 lakh crore for the issue size of Rs 15,199.44 crore.

The Pune-based company had offered its shares in the fixed price band of Rs 66-70 per share with a lot size of 214 shares and the IPO was open for bidding between September 9 and September 11 and saw participation from a diverse set of investors, including qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail investors.  The company raised Rs 6,560 crore via its primary offering, which included a fresh share sale of Rs 3,560 crore and an offer for sale worth Rs 3,000 crore. The other most notable event of the IPO of Bajaj Housing Finance was that it also surpassed the application as it received 8.9 million applications which is higher than the application received by the IPO of Tata Technologies in November 2023 at 7.30 million.

The overwhelming response to the Bajaj Housing Finance IPO underscores the strong investor appetite for quality real estate and housing finance companies in the country. The issue was open for subscription from September 9 to September 11, 2024, 

"The record-breaking subscription for the Bajaj Housing Finance IPO is a testament to the strong investor confidence in the company's growth potential and the overall resilience of the Indian real estate and housing finance sectors," said a market analyst.

However, some experts have cautioned that the unprecedented level of oversubscription could also signal systemic risks, as it may indicate excessive liquidity and speculative behaviour in the market. Nonetheless, after the successful completion of the Bajaj Housing Finance IPO investors will now eagerly await the listing, with the company's shares commanding a significant premium in the grey market.