Bajaj Housing Finance made a stellar debut on the stock exchanges on Monday, September 16, with its shares listing at Rs 150 per share on both NSE and BSE, reflecting a 114% premium over the IPO issue price of Rs 70 per share. Shares had been allocated to successful IPO bidders on September 13.
The company’s shares opened higher than expectations, surpassing the grey market premium (GMP) of Rs 75. Following the strong debut, the market capitalization of Bajaj Housing Finance surged past Rs 1.07 lakh crore, with the stock hitting a day-high of Rs 160.92, more than doubling its estimated market value of Rs 58,297 crore at the IPO allotment price.
The ₹6,560-crore IPO of Bajaj Housing Finance received a phenomenal response, with subscriptions reaching a skyrocketing ₹3.23 lakh crore. Experts also say the strong numbers of the company and the upbeat outlook for the housing finance sector are the defining reasons behind a stratospheric market response.
Analysts, such as Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers, suggest a ‘hold’ approach for the long-term benefit in the stock, with long-term growth prospects for the company.
The IPO was done as part of adherence to the Reserve Bank of India guidelines that make it binding for every “upper layer” non-banking finance company to list on stock exchanges by September 2025. Further, it intends to utilize the proceeds from the present offerings for strengthening the basis of its capital as a prelude to the proposed diversification and expansion.
Bajaj Housing Finance Ltd. is a non-deposit-taking housing finance company that was registered in 2015. It offers a suite of financial products that encompasses home loans, loans against property, and developer financing.
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Source: Moneycontrol
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