Bajaj Housing Finance Shares Soar Over 100% on Blockbuster Debut, Becomes India’s Most Valuable Housing Finance Company
Bajaj Housing Finance Ltd. (BHF), a subsidiary of Bajaj Finance, made a spectacular trading debut on the Indian stock exchanges today, with its shares skyrocketing over 100% from the issue price. The company’s shares listed at a premium of 114% on the National Stock Exchange (NSE), opening at ₹150 against the issue price of ₹70 per share.
The stock continued its upward march, hitting the 10% upper circuit at ₹164.99, valuing the company at over ₹1.37 trillion and making it the most valuable housing finance company in the country. By the end of the trading session, BHF shares had closed at ₹165, a gain of 135% over the issue price.
The impressive listing performance was driven by the overwhelming response to the company’s ₹6,560 crore initial public offering (IPO), which was subscribed nearly 64 times. The IPO received bids for 4,627 crore shares against 72.75 crore shares on offer, making it the highest-ever subscription for an Indian IPO.
Bajaj Housing Finance’s Growth Potential and Competitive Advantages
Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank, has shown rapid growth since it started mortgage operations in 2018. The company has maintained a high asset quality and stable net interest margin (NIM) despite intense competition in the market.
The company’s strong parentage, reasonable valuations, and future growth prospects have been key factors driving investor interest. Bajaj Finance, the parent company, has a reputation for delivering consistent returns and strong fundamentals, making Bajaj Housing Finance an attractive investment proposition.
Analysts Remain Positive on Bajaj Housing Finance’s Long-Term Prospects
Analysts remain positive on Bajaj Housing Finance’s long-term prospects, with most suggesting that investors should consider buying the stock for long-term growth, taking into account their individual risk-taking capacity.
“We would look favourably at Bajaj Housing Finance for its acute focus on salaried HL, steady expense ratio, and benign credit costs, manifesting strong return ratios. We value Bajaj Housing Finance at 6.5 times September 2026 BV at ₹210,” said analysts from Phillip Capital in their initiation report.
However, some analysts have advised caution, noting that the stock is currently trading at over six times its estimated book value for the financial year 2025-26, while other listed housing finance company peers trade in the range of 0.9x and 3.5x despite a similar or better return on asset profile.
Bajaj Housing Finance’s IPO and Compliance with RBI Regulations
The share sale was carried out to comply with the Reserve Bank of India’s (RBI) regulations, which mandate that upper-layer non-banking finance companies must be listed on stock exchanges by September 2025. The IPO consisted of a fresh issue of equity shares of up to ₹3,560 crore and an offer-for-sale (OFS) of equity shares worth ₹3,000 crore by parent Bajaj Finance.
Bajaj Housing Finance offers an extensive range of mortgage products, including home loans, loans against property, lease rental discounting, and developer financing. The company has been classified as an ‘upper layer’ NBFC by the RBI in India.
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.
