Bajaj Housing Finance Share Price Analysis: Performance and Future Outlook
Bajaj Housing Finance, a prominent player in the housing finance sector, made a significant market debut on September 16, 2024. The company’s shares opened at ₹150 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), reflecting a remarkable 114.29% premium over its issue price of ₹70. This strong performance was anticipated due to the overwhelming subscription during its initial public offering (IPO), which took place from September 9 to September 11, 2024.
Main Points
IPO Subscription Highlights
The Bajaj Housing Finance IPO was met with a robust response from investors, garnering a total subscription of 63.61 times. This included:
- Qualified Institutional Buyers (QIBs): 209.36 times
- Non-Institutional Investors (NIIs): 41.51 times
- Retail Investors: 7.04 times
- Employee Portion: 2.05 times
- Shareholder Portion: 17.53 times
The total issue size was ₹6,560 crore, comprising a fresh issue of equity shares worth ₹3,560 crore and an offer for sale (OFS) of ₹3,000 crore by its parent company, Bajaj Finance.
On the listing day, Bajaj Housing Finance shares initially traded at ₹150, quickly rising to a high of ₹160. By 11:19 AM IST, the stock was priced at ₹159.25 on NSE, marking a 6.17% gain, while it reached ₹159.32 on BSE, reflecting a nearly 6.21% increase.
Analysts noted that the stock’s performance exceeded expectations, with some advising investors to consider booking profits while others recommended holding for long-term growth potential.
During the listing ceremony, Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, expressed optimism about the housing finance industry’s growth, projecting a consistent credit growth rate of 12-15%. He emphasized that demand for housing finance remains strong despite fluctuations in interest rates, indicating a resilient market outlook.
Prashanth Tapse, a senior research analyst, highlighted the Bajaj brand’s historical performance in rewarding investors. He suggested that while conservative investors might consider profit booking, long-term investors should hold their positions, given the optimistic sector outlook and the company’s strategic positioning.
The proceeds from the IPO are intended to strengthen Bajaj Housing Finance’s capital base, aligning with the Reserve Bank of India’s directive for non-banking financial companies (NBFCs) to list on stock exchanges by September 2025. This move is expected to enhance the company’s ability to meet future capital requirements and expand its operations in the competitive housing finance market.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
