bajaj housing finance Archives

D-St to track US Fed’s rate decision this week…

16 September 2024
by admin

MUMBAI: Dalal Street investors, like their global counterparts, are awaiting the US Federal Reserve’s Sept 18 meeting, which could decide the direction of markets around the world. While it is almost a given that the US Fed is going to cut interest rates, the quantum of the reduction could be a deciding factor, market players said.
In the new week, the Bank of Japan, too, will decide on whether to change its interest rates, which will also impact markets globally.The US Fed and BoJ are poised to move in opposite directions on rates.
In addition, the listing of Bajaj Housing Finance — which set several records for the IPO segment of India — will also decide how investors look at other offers in the pipeline.

The impact of the US Fed’s rate decision on Sept 18 will be felt in the Indian market on Thursday. “With a 25 basis points (100 basis points =1 percentage point) rate cut already priced in, a significant market reaction is unlikely. The Fed’s guidance on inflation, growth, and future rate cuts will be key in shaping broader market sentiment, particularly regarding global liquidity and risk appetite,” said Ajit Mishra, SVP (research), Religare Broking. “A 50 bps cut could spark a positive reaction, especially in emerging mar kets like India. However, this effect may be short-lived as it could also raise concerns about the underlying strength of the US economy.”
The decision on rates by BoJ is set for Friday, when Indian markets will be open. Any decision to hike rates could trigger another round of unwinding of speculative contracts based on Japanese yen (called yen carry trade) and have the potential to trigger high volatility in global markets, like the one witnessed in early Aug, market players said.
Indian investors are also awaiting the WPI numbers due in the week. The domestic market would be impacted by how foreign funds position themselves after the decisions by the US Fed and the BOJ.
The listing of Bajaj Housing Finance, set for Monday, would decide the Street’s direction relating to IPOs. On Sunday night, the grey market premium for the stock — that gives some indications about the listing of a stock — was hovering around Rs 76 per share, while the IPO price was set at Rs 70. Going by this, investors are expected to double their money on listing.
The week would also witness the listing of PN Gadgil Jewellers, which had a strong IPO as well. Investors will have the option of investing in at least seven IPOs in the week, data on BSE and NSE showed.

Science & Environment

Bajaj Housing Finance’s IPO gets record 3.2 lakh crore…

11 September 2024
by admin

MUMBAI: The current frenzy in the IPO market in India, Bajaj Group reputation and the strong fundamentals of Bajaj Housing Finance combined to set a few new records for the primary market on Wednesday.
As the Rs 6,560-crore IPO for Bajaj Housing Finance closed in the evening, there were about 89 lakh investors who had shown interest in buying the company’s shares on offer.As a result, the IPO generated a demand for about Rs 3.2 lakh crore – an oversubscription figure of more than 67 times (excluding the anchor investor part). The number of applications and the demand book value, both were new records for the primary market in India.
Data from Axis Capital, one of the lead managers to the IPO, showed that the institutional portion of the offer was subscribed 222 times and the part reserved for high net worth investors (HNIs) was subscribed nearly 44 times. The part reserved for shareholders of Bajaj Finance and Bajaj Finserv was subscribed 17.4 times. In addition, the portion reserved for retail investors were subscribed over seven times while the employee portion was subscribed more than twice.
Excluding the Rs 1,758-crore worth of shares which were allotted to anchor investors a day before opening of the IPO, shares worth Rs 4,802 crore were offered for bidding in the price band of Rs 66 to Rs 70-per-share.
The Bajaj Housing Finance IPO had opened on Sept 9. On Day 1 itself, it was subscribed twice over and more than seven times by the end of Day 2, an unusual trend even in the current frenzied primary market, veterans of Dalal Street had pointed out. They also pointed out that the historical strong returns from the two Bajaj group companies in the BFSI space – Bajaj Finance and Bajaj Finserv – also had a rub-off effect on Bajaj Housing Finance IPO. In the last 10 years, Bajaj Finance’s stock has gone up by 28 times while Bajaj Finserv’s is up 17 times. In addition, there were dividends from these companies in each of the last 10 years, data on BSE showed.
The record-breaking IPO also lifted marketmen’s expectations for a blockbuster listing of the stock, set for Monday, Sept 16.
In the grey market, the unofficial non-deliverable market for high-risk traders, the indicative listing price for the stock is Rs 145, more than twice its offer price of Rs 70, the upper end of the band.

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D-St to track US Fed’s rate decision this week…

Bajaj Housing Finance’s IPO gets record 3.2 lakh crore…