Bajaj Housing Finance Debuts Strongly: Shares List at ₹150 with 114% Premium

On Monday, September 16, Bajaj Housing Finance made a significant impact on the stock markets with its debut. The company’s shares were listed at ₹150 each on both the NSE and BSE, representing a substantial premium of 114% over the IPO price of ₹70 per share. The shares had been allocated to successful bidders on September 13.

The initial listing provided gains of ₹80 per share, which slightly surpassed the grey market premium, reported to be ₹75 on the morning of the listing day. Following this impressive start, Bajaj Housing Finance shares continued to rise, reaching ₹164.99 and hitting the upper circuit limit, reflecting a remarkable 135% increase from the IPO price. This surge pushed the company’s market capitalization to ₹1.37 lakh crore, nearly 2.4 times higher than the estimated valuation of ₹58,297 crore based on the IPO price.

The IPO, which was valued at ₹6,560 crore, received an overwhelming response, with total subscriptions amounting to ₹3.23 lakh crore. This indicates a strong investor interest and confidence in the company’s future prospects. Analysts have highlighted that the company’s robust fundamentals and the positive outlook for the housing finance sector could potentially lead to substantial returns over time.

Consequently, investors who received shares are advised to consider holding onto them to benefit from anticipated future growth. Narendra Solanki, Head of Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers, recommends that investors retain their shares for long-term gains.

In an exclusive interview with CNBC-TV18, Sanjiv Bajaj, a prominent figure in the company, commented on the impact of interest rate changes. He noted that rate cuts have not significantly affected demand, and there was no noticeable impact on the company’s Net Interest Margin (NIM) from the listing. He assured that the NIM is expected to remain stable.

The IPO was conducted to align with the Reserve Bank of India’s (RBI) regulations, which mandate that upper-layer non-banking finance companies (NBFCs) must list on stock exchanges by September 2025. The funds raised from the fresh issue are intended to bolster the company’s capital base, preparing it for future requirements.

Established in September 2015, Bajaj Housing Finance is a non-deposit-taking housing finance company registered with the National Housing Bank. The firm specializes in providing a variety of financial solutions, including loans for purchasing and renovating residential and commercial properties.

As an “upper layer” NBFC according to RBI classification, the company offers a broad range of mortgage products. These include home loans, loans against property, lease rental discounting, and developer financing.

Investors are advised to carefully consider their options. While the strong debut and significant listing gains are encouraging, the decision to hold or book profits should be based on individual investment goals and market conditions. Consulting with certified financial experts is recommended before making any investment decisions.

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