Shares of Bajaj Housing Finance are poised to make their debut on Dalal Street today, September 16. The initial public offering (IPO), which garnered historic interest from investors during its three-day bidding process, has sparked significant discussion regarding its potential to deliver multibagger returns. However, recent fluctuations in its grey market premium (GMP) have raised questions about its initial listing.

Grey market premium remains strong ahead of listing<o:p></o:p>

The shares were initially commanding a GMP of Rs 73-75 per share, indicating a potential listing gain of 104-105 per cent for investors. This premium had dipped from a previous high of Rs 84 per share, reflecting the volatility and changing investor sentiments as the listing date approached.

Bajaj Housing Finance's IPO opened for bidding from September 9 to 11, offering shares within a price range of Rs 66-70 each and a lot size of 214 shares. The company successfully raised an impressive Rs 6,560 crore through this primary offering, which included a fresh share sale of Rs 3,560 crore and an offer-for-sale (OFS) amounting to Rs 3,000 crore from Bajaj Finance.

Issue witnessed overwhelming interest for investors<o:p></o:p>

During its bidding process, the issue received overwhelming support, being oversubscribed 63.61 times overall. Qualified institutional buyers (QIBs) particularly showed a strong response, with their quota being subscribed an extraordinary 209.36 times. The non-institutional and retail investor categories also saw substantial interest, with subscriptions of 41.51 times and 7.04 times respectively.

Notably, Bajaj Housing Finance secured its position as the first Indian IPO to attract bids worth an astounding Rs 3 lakh crore, with total bids hitting around Rs 3.24 lakh crore for the offered shares. This reflects significant investor confidence in the company amidst the competitive landscape of the housing finance sector.

History of Bajaj Housing Finance and Future Potential<o:p></o:p>

Incorporated in 2008, Bajaj Housing Finance has built a reputation as a non-deposit-taking housing finance company (HFC) under the aegis of the National Housing Bank (NHB). The company has been operative in providing mortgage loans since the financial year 2018 and is part of the well-established Bajaj Group, known for its diversified interests across various sectors.

While brokerages remain mostly positive about the IPO, suggesting that investors consider long-term investments based on the company’s solid foundation, a key concern persists. Analysts caution that asset concentration and exposure to real estate could pose risks to investors in the long run. Hence, aspiring investors are suggested to consult SEBI-registered investment professionals before making investment decisions in security markets. Investments in security markets come along with risks of capital depreciation.&nbsp;

The offering was managed by notable book-running lead managers, including BofA Securities India, Axis Capital, and Goldman Sachs (India) Securities, among others. As Bajaj Housing Finance's shares are set to begin trading on both BSE and NSE, investors and market followers alike will be keenly observing how this much-anticipated listing unfolds.&nbsp;

&nbsp;

Shares of Bajaj Housing Finance are poised to make their debut on Dalal Street today, September 16. The initial public offering (IPO), which garnered historic interest from investors during its three-day bidding process, has sparked significant discussion regarding its potential to deliver multibagger returns.

Shares of Bajaj Housing Finance are poised to make their debut on Dalal Street today, September 16. The initial public offering (IPO), which garnered historic interest from investors during its three-day bidding process, has sparked significant discussion regarding its potential to deliver multibagger returns. However, recent fluctuations in its grey market premium (GMP) have raised questions about its initial listing. Grey market premium remains strong ahead of listing The shares were initially commanding a GMP of Rs 73-75 per share, indicating a potential listing gain of 104-105 per cent for investors. This premium had dipped from a previous high of Rs 84 per share, reflecting the volatility and changing investor sentiments as the listing date approached. Bajaj Housing Finance's IPO opened for bidding from September 9 to 11, offering shares within a price range of Rs 66-70 each and a lot size of 214 shares. The company successfully raised an impressive Rs 6,560 crore through this primary offering, which included a fresh share sale of Rs 3,560 crore and an offer-for-sale (OFS) amounting to Rs 3,000 crore from Bajaj Finance. Issue witnessed overwhelming interest for investors During its bidding process, the issue received overwhelming support, being oversubscribed 63.61 times overall. Qualified institutional buyers (QIBs) particularly showed a strong response, with their quota being subscribed an extraordinary 209.36 times. The non-institutional and retail investor categories also saw substantial interest, with subscriptions of 41.51 times and 7.04 times respectively. Notably, Bajaj Housing Finance secured its position as the first Indian IPO to attract bids worth an astounding Rs 3 lakh crore, with total bids hitting around Rs 3.24 lakh crore for the offered shares. This reflects significant investor confidence in the company amidst the competitive landscape of the housing finance sector. History of Bajaj Housing Finance and Future Potential Incorporated in 2008, Bajaj Housing Finance has built a reputation as a non-deposit-taking housing finance company (HFC) under the aegis of the National Housing Bank (NHB). The company has been operative in providing mortgage loans since the financial year 2018 and is part of the well-established Bajaj Group, known for its diversified interests across various sectors. While brokerages remain mostly positive about the IPO, suggesting that investors consider long-term investments based on the company’s solid foundation, a key concern persists. Analysts caution that asset concentration and exposure to real estate could pose risks to investors in the long run. Hence, aspiring investors are suggested to consult SEBI-registered investment professionals before making investment decisions in security markets. Investments in security markets come along with risks of capital depreciation. The offering was managed by notable book-running lead managers, including BofA Securities India, Axis Capital, and Goldman Sachs (India) Securities, among others. As Bajaj Housing Finance's shares are set to begin trading on both BSE and NSE, investors and market followers alike will be keenly observing how this much-anticipated listing unfolds.

Bajaj Housing Finance IPO expected to have a strong listing on Dalal Street

Equity benchmark indices traded in the green on Monday amid positive gains in global markets and an uptick in banking and financial stocks.

The BSE S&amp;P Sensex closed 164 points or 0.4 per cent higher at 37,145 while the Nifty 50 moved up by 57 points to 11,003.&nbsp;

All sectoral indices at the National Stock Exchange (NSE) were in the green except for Nifty IT, which slipped by 0.7 per cent. Nifty PSU bank gained 1.6 per cent, private bank by 0.9 per cent, auto by 0.8 per cent and financial service by 0.8 per cent.

Among stocks, Yes Bank gained by 4.3 per cent to close at Rs 63 per share while Kotak Mahindra Bank was up by 2 per cent. State Bank of India closed 1.4 per cent higher at Rs 277.90 per share. Bajaj Finserve and Bajaj Finance closed 1.7 and 1.6 per cent higher respectively.&nbsp;

Deewan Housing Finance Ltd rallied 5.2 per cent after DSP Mutual Fund said it has paid the entire pending amount. The mutual fund had exposure of Rs 150 crore to DHFL commercial papers. Agro-chemical major UPL gained by 3.8 per cent while auto major Maruti was up by 2.7 per cent, Larsen &amp; Toubro by 2.4 per cent, Bharti Airtel by 2.2 per cent and Titan by 1.7 per cent.

However, IT stocks were down with HCL Tech sliding by 1.4 per cent, Infosys by 1.2 per cent, Tech Mahindra by 1 per cent and Tata Consultancy Services by 0.6 per cent.

The other prominent losers were Eicher Motors, Bajaj Auto, Tata Steel, Indiabulls Housing Finance and Vedanta. Meanwhile, Asian stocks moved up amid a cautious mood as investors hoped for stimulus to support growth in the world`s major economies. The MSCI`s broadest index of Asia Pacific shares outside Japan added 0.1 per cent.

The Shanghai Composite Index was up by 0.8 per cent, South Korea's KOSPI rose by 0.5 per cent and Japan`s Nikkei was up by 0.5 per cent.

Equity benchmark indices traded in the green on Monday amid positive gains in global markets and an uptick in banking and financial stocks. The BSE S&P Sensex closed 164 points or 0.

Equity benchmark indices traded in the green on Monday amid positive gains in global markets and an uptick in banking and financial stocks. The BSE S&P Sensex closed 164 points or 0.4 per cent higher at 37,145 while the Nifty 50 moved up by 57 points to 11,003. All sectoral indices at the National Stock Exchange (NSE) were in the green except for Nifty IT, which slipped by 0.7 per cent. Nifty PSU bank gained 1.6 per cent, private bank by 0.9 per cent, auto by 0.8 per cent and financial service by 0.8 per cent. Among stocks, Yes Bank gained by 4.3 per cent to close at Rs 63 per share while Kotak Mahindra Bank was up by 2 per cent. State Bank of India closed 1.4 per cent higher at Rs 277.90 per share. Bajaj Finserve and Bajaj Finance closed 1.7 and 1.6 per cent higher respectively. Deewan Housing Finance Ltd rallied 5.2 per cent after DSP Mutual Fund said it has paid the entire pending amount. The mutual fund had exposure of Rs 150 crore to DHFL commercial papers. Agro-chemical major UPL gained by 3.8 per cent while auto major Maruti was up by 2.7 per cent, Larsen & Toubro by 2.4 per cent, Bharti Airtel by 2.2 per cent and Titan by 1.7 per cent. However, IT stocks were down with HCL Tech sliding by 1.4 per cent, Infosys by 1.2 per cent, Tech Mahindra by 1 per cent and Tata Consultancy Services by 0.6 per cent. The other prominent losers were Eicher Motors, Bajaj Auto, Tata Steel, Indiabulls Housing Finance and Vedanta. Meanwhile, Asian stocks moved up amid a cautious mood as investors hoped for stimulus to support growth in the world`s major economies. The MSCI`s broadest index of Asia Pacific shares outside Japan added 0.1 per cent. The Shanghai Composite Index was up by 0.8 per cent, South Korea's KOSPI rose by 0.5 per cent and Japan`s Nikkei was up by 0.5 per cent.

Nifty settles above 11,000 mark, banking stocks gain

Even while India continues to make its mark globally and seeks to improve its living conditions, access to quality affordable housing is still a far-fetched dream for most of its citizenry. The deficit of affordable homes is only widening with numbers predicted to reach 30 million by 2022.&nbsp;

There is no denying that the current government understands that quality, quantity, availability and affordability of housing are the key drivers for a country’s economic competitiveness. That’s precisely why ‘affordable housing’ has gained such currency over the last few years.

But a pertinent question is this: why are all affordable homes in India limited to the peripheries of cities? Simply put, the exorbitant cost of land within city-limits – especially across metros – has compelled affordable housing makers to move beyond the boundaries.&nbsp;

In a land-starved city like Mumbai, for instance, housing is out of common man’s reach. High land cost for developers is ultimately passed on to consumers. Even if we consider re-development of old and shanty buildings within city limits at higher floor space index (FSI) as a probable solution, it can only bring respite to a limited few.&nbsp;

Not to miss, the shoddy implementation of policies - be it due to improper property ownerships or builder incompetency to complete re-development projects - are major roadblocks that make it difficult for even the old buildings to be replaced by the new.

There is also the view that India lacks sufficient policies supporting the housing needs for the poor, as against its western counterparts. This is not entirely true. Policies pertaining to regional urban planning exist in this country as well, but what it essentially lacks is the rigorous implementation of these, be it for vote-bank politics, selfish and greedy needs or other intangible factors.&nbsp;

On the contrary, Singapore fares much better than India because affordable housing was always an integral part of their prudent land-use planning way back in 1990s and policies were strictly adhered to. &nbsp;

It led to strong economic growth and social cohesion, ensuring that sufficient land is fortified supporting future development of housing. The very fact that around 88 per cent public housing is built by the Housing and Development Board or HDB (the major housing provider) and 90 per cent of the population own their own homes, speaks volumes of how policies are implemented. HDB sells units to first-time home buyers at a concession to encourage home ownership.&nbsp;

The demand-supply mismatch leading to high unsold stock is another factor that leads to affordable housing being developed outside the city.&nbsp;

ANAROCK data indicates that way back in 2016, the inventory overhang was as high as 40 months – it should ideally never be more than 24 months at any given time. The fact is that costlier homes at a central location fetched in better returns to both investors and builders alike. They were being rampantly built even if 'real' demand was tilted towards other segments.&nbsp;

Just when sales started plummeting considerably, there arose a realisation to bridge the gap between the actual demand and supply. Currently, most stakeholders are doing their research before launching a specific project, thereby trying to actively follow demand.&nbsp;

This has helped reduce the inventory overhang period to 35 months, as on 2018. What’s more, those trying to fit their projects within the ‘affordability’ bracket and yet be centrally located, favour smaller size homes.

Furthermore, the vacancy rate of homes in most urban cities in India is significantly high at 12 per cent, which if not for sale, can actually be opened up for rental housing.&nbsp;

This may eventually help ease pressure marginally and also aid many to live within the city limits and in close proximity to their workplace or other social infra facilities. This might also help in keeping prices under check.

The proposal to open more government unutilised land pockets within city limits for building affordable homes under the Pradhan Mantri Awas Yojana or PMAY is being considered, but nothing concrete appears to be happening.&nbsp;

If these land parcels are released for affordable housing development, there will be less compulsions to head outside the city. As for unused private land, more incentives like density bonuses can be given — increasing FSI on a plot of land and, thereby its value, while in exchange, the developer can build some affordable units. This will limit affordable housing to be only present on the city outskirts.

That said, the day developers realise that building affordable homes is not just the prerogative of the government in power, but must form an integral part of their business and duty, India will be a far more progressive country that will efficiently provide ‘housing for all.’ 
 
(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-for-quality-affordable-housing-follow-the-pmay-model-2699938">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

&nbsp;

Even while India continues to make its mark globally and seeks to improve its living conditions, access to quality affordable housing is still a far-fetched dream for most of its citizenry.

Even while India continues to make its mark globally and seeks to improve its living conditions, access to quality affordable housing is still a far-fetched dream for most of its citizenry. The deficit of affordable homes is only widening with numbers predicted to reach 30 million by 2022. There is no denying that the current government understands that quality, quantity, availability and affordability of housing are the key drivers for a country’s economic competitiveness. That’s precisely why ‘affordable housing’ has gained such currency over the last few years. But a pertinent question is this: why are all affordable homes in India limited to the peripheries of cities? Simply put, the exorbitant cost of land within city-limits – especially across metros – has compelled affordable housing makers to move beyond the boundaries. In a land-starved city like Mumbai, for instance, housing is out of common man’s reach. High land cost for developers is ultimately passed on to consumers. Even if we consider re-development of old and shanty buildings within city limits at higher floor space index (FSI) as a probable solution, it can only bring respite to a limited few. Not to miss, the shoddy implementation of policies - be it due to improper property ownerships or builder incompetency to complete re-development projects - are major roadblocks that make it difficult for even the old buildings to be replaced by the new. There is also the view that India lacks sufficient policies supporting the housing needs for the poor, as against its western counterparts. This is not entirely true. Policies pertaining to regional urban planning exist in this country as well, but what it essentially lacks is the rigorous implementation of these, be it for vote-bank politics, selfish and greedy needs or other intangible factors. On the contrary, Singapore fares much better than India because affordable housing was always an integral part of their prudent land-use planning way back in 1990s and policies were strictly adhered to. It led to strong economic growth and social cohesion, ensuring that sufficient land is fortified supporting future development of housing. The very fact that around 88 per cent public housing is built by the Housing and Development Board or HDB (the major housing provider) and 90 per cent of the population own their own homes, speaks volumes of how policies are implemented. HDB sells units to first-time home buyers at a concession to encourage home ownership. The demand-supply mismatch leading to high unsold stock is another factor that leads to affordable housing being developed outside the city. ANAROCK data indicates that way back in 2016, the inventory overhang was as high as 40 months – it should ideally never be more than 24 months at any given time. The fact is that costlier homes at a central location fetched in better returns to both investors and builders alike. They were being rampantly built even if 'real' demand was tilted towards other segments. Just when sales started plummeting considerably, there arose a realisation to bridge the gap between the actual demand and supply. Currently, most stakeholders are doing their research before launching a specific project, thereby trying to actively follow demand. This has helped reduce the inventory overhang period to 35 months, as on 2018. What’s more, those trying to fit their projects within the ‘affordability’ bracket and yet be centrally located, favour smaller size homes. Furthermore, the vacancy rate of homes in most urban cities in India is significantly high at 12 per cent, which if not for sale, can actually be opened up for rental housing. This may eventually help ease pressure marginally and also aid many to live within the city limits and in close proximity to their workplace or other social infra facilities. This might also help in keeping prices under check. The proposal to open more government unutilised land pockets within city limits for building affordable homes under the Pradhan Mantri Awas Yojana or PMAY is being considered, but nothing concrete appears to be happening. If these land parcels are released for affordable housing development, there will be less compulsions to head outside the city. As for unused private land, more incentives like density bonuses can be given — increasing FSI on a plot of land and, thereby its value, while in exchange, the developer can build some affordable units. This will limit affordable housing to be only present on the city outskirts. That said, the day developers realise that building affordable homes is not just the prerogative of the government in power, but must form an integral part of their business and duty, India will be a far more progressive country that will efficiently provide ‘housing for all.’ (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

For quality affordable housing, follow the PMAY model

Shares of housing finance firms came crashing sharply Friday, with Dewan Housing Finance tumbling up to 60 per cent on massive selling.

The scrip of Dewan Housing Finance Corporation plummeted 59.67 per cent to Rs 246.25 -- its 52-week low -- on BSE.

Among others, Indiabulls Housing Finance nosedived 35 per cent, Gruh Finance tumbled 17.66 per cent, Can Fin Homes plunged 14.55 per cent, PNB Housing Finance tanked 9.23 per cent.

The broader market also witnessed huge sell-off, with the BSE benchmark index crashing over 1,100 points within a matter of minutes during the afternoon trade.&nbsp;

The index had plunged 1,127.58 points, or 3.03 per cent, to hit an intra-day low of 35,993.64. It, however, recovered nearly 900 points within minutes of the fall.&nbsp;

Shares of housing finance firms came crashing sharply Friday, with Dewan Housing Finance tumbling up to 60 per cent on massive selling. The scrip of Dewan Housing Finance Corporation plummeted 59.

Shares of housing finance firms came crashing sharply Friday, with Dewan Housing Finance tumbling up to 60 per cent on massive selling. The scrip of Dewan Housing Finance Corporation plummeted 59.67 per cent to Rs 246.25 -- its 52-week low -- on BSE. Among others, Indiabulls Housing Finance nosedived 35 per cent, Gruh Finance tumbled 17.66 per cent, Can Fin Homes plunged 14.55 per cent, PNB Housing Finance tanked 9.23 per cent. The broader market also witnessed huge sell-off, with the BSE benchmark index crashing over 1,100 points within a matter of minutes during the afternoon trade. The index had plunged 1,127.58 points, or 3.03 per cent, to hit an intra-day low of 35,993.64. It, however, recovered nearly 900 points within minutes of the fall.

Housing finance firms crash; DHFL nosedives 60%

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