Bajaj Housing Finance Limited’s IPO Subscribed 67 Times in 3 Days
The initial public offering (IPO) of Bajaj Housing Finance Limited (BHFL) was subscribed 67 times by the end of Day 3. The portion reserved for retail investors was subscribed over 7 times, while qualified institutions subscribed 222 times and non-institutional buyers 44 times.
An IPO is the process of offering shares of a private company to the public for the first time. BHFL aims to raise Rs 6,560 crore with a price band of Rs 66-70. The company, headquartered in Pune, provides finance for home and commercial space purchases, renovations, and loans against property for business or personal needs.
The IPO includes a fresh issue of 50.86 crore shares, totaling Rs 3,560 crore, and an offer for sale of 42.86 crore shares, totaling Rs 3,000 crore. The proceeds will be used to strengthen the company’s capital base for future lending operations. Investors had to bid for a minimum of 214 equity shares, with the minimum amount for retail investors being Rs 14,980.
The allotment for the IPO is expected to be finalized on Thursday, with a tentative listing on the exchanges on Monday.
Doubts Revealed
Bajaj Housing Finance Limited -: Bajaj Housing Finance Limited is a company in India that provides loans to people for buying homes.
IPO -: IPO stands for Initial Public Offering. It is when a company sells its shares to the public for the first time to raise money.
Subscribed 67 Times -: This means that people wanted to buy 67 times more shares than what was available. It shows a lot of interest in the company’s shares.
Retail investors -: Retail investors are regular people like you and me who buy shares in small amounts.
Qualified institutions -: Qualified institutions are big organizations like banks and mutual funds that buy large amounts of shares.
Non-institutional buyers -: Non-institutional buyers are individuals or groups who buy shares in larger amounts than retail investors but are not big institutions.
Rs 6,560 crore -: Rs 6,560 crore is a large amount of money. One crore is equal to 10 million, so this is 6,560 times 10 million rupees.
Price band -: The price band is the range of prices at which the shares will be sold. In this case, it is between Rs 66 and Rs 70 per share.
Capital base -: The capital base is the amount of money a company has to support its business and grow.
Fresh issue -: A fresh issue is when a company creates new shares to sell to the public to raise money.
Offer for sale -: An offer for sale is when existing shareholders sell their shares to the public.
Allotment -: Allotment is the process of distributing the shares to the people who applied to buy them.
Listing -: Listing is when the company’s shares start trading on the stock exchange, where people can buy and sell them.
