On October 23, 2023, a man walked past a Bajaj motorcycle dealership in Mumbai, India.
Niharika Kulkarni | Noor Photos | Getty Images
Shares of India's Bajaj Housing Finance more than doubled in its listing on Monday, reflecting strong demand from investors looking to participate in the sector The country’s growing real estate industry.
the company’s shares, Listed on a national stock exchangesoared to 161 rupees per share, an increase of about 130% from the IPO pricing ceiling of 70 rupees.
Bajaj Housing Finance Corporation Blockbuster IPO attracted $39 billion worth of bids last weekthe shares were oversubscribed nearly 64 times. The company raised $781 million, valuing it at $7 billion.
The company's total market capitalization after Monday's listing was about $15.6 billion (Rs 1,331.59 billion), exchange data showed.
Pune-based Bajaj Housing Finance serves more than 88.11 million customers across the country, according to the Bajaj Housing Finance website.
The home loan financing company, a subsidiary of non-bank lender Bajaj Finance, provides mortgage loans primarily to high-end individual home buyers and corporate entities for the purchase and renovation of homes or commercial spaces.
It also provides property loans for business or personal needs and working capital for business expansion purposes.
The company is part of Indian conglomerate Bajaj Group, which also has automotive and consumer goods businesses.
“(IPO) supply has increased significantly in response to the pick-up in (Indian) demand,” Ashish Gupta, chief information officer of Axis Mutual Fund, told CNBC's “Street Signs Asia” on Monday, noting that the trend will continue this quarter. The number of IPOs nearly tripled from the previous quarter.
Indian stock markets have attracted continued investor interest as the country remains the world's fastest-growing major economy.
Benchmark indices Nifty 50 and Sensex are up 17% and 15% respectively so far this year, compared with gains of 20% and 19% respectively last year.