India’s Largest IPO
Bajaj Housing Finance Ltd., the home-loan division of India’s largest shadow lender, has achieved a remarkable response to its share-sale debut, underscoring the ongoing investor enthusiasm for public offerings in the country, Bloomberg reported.
The company’s initial public offering (IPO), which sought to raise ₹65.6 billion ($781 million), stands as India’s largest public offering of 2024.
The IPO drew an astonishing $39 billion in bids by the final day of the sale on Wednesday, highlighting an unprecedented level of investor interest.
This massive bid amount represents more than 1% of India’s gross domestic product (GDP) for the fiscal year ending in 2024.
The overwhelming demand was driven primarily by institutional investors, who placed bids that were more than 200 times the amount of shares allocated to them.
In addition, the retail segment of the IPO was oversubscribed by a factor of seven. This level of demand has surpassed even that seen during the previous year’s high-profile IPO of Tata Technologies.
India’s stock market has been exceptionally active this year, with a total of $7.75 billion raised from new listings to date. This amount exceeds the total proceeds from the past two years combined, according to Bloomberg’s data.
The market has been buoyed by strong first-day gains, which have averaged around 30% this year, drawing significant interest from investors.
Looking ahead, the Indian IPO landscape is set to remain vibrant, with major sales on the horizon. Hyundai Motor Co., for instance, is expected to raise up to $3.5 billion through the listing of its Indian unit in the coming months.
For its part, Bajaj Housing Finance aims to raise up to ₹35.6 billion through the issuance of new shares.
Additionally, Bajaj Finance, the founder of the company, is offering up to ₹30 billion worth of shares in the sale.
On September 6, anchor investors such as the Government of Singapore, Goldman Sachs, and JPMorgan India committed to 251.14 million shares, valued at ₹17.6 billion at ₹70 per share.
This robust backing from major institutional players further underscores the high level of confidence in Bajaj Housing Finance’s market debut.
I am a dynamic professional, specializing in Peace and Conflict Studies, Conflict Management and Resolution, and International Relations. My expertise is particularly focused on South Asian Conflicts and the intricacies of the Indian Ocean and Asia Pacific Politics. With my skills as a Content Writer, I serve as a bridge between academia and the public, translating complex global issues into accessible narratives. My passion for fostering understanding and cooperation on the national and international stage drives me to make meaningful contributions to peace and global discourse.
