Bajaj Housing Finance Makes Strong Debut on Stock Exchanges

Bajaj Housing Finance witnessed an impressive debut on the stock exchanges today, reflecting strong market confidence in the company. On both the BSE and NSE, the shares were listed at ₹150, which is a 114.28% increase over the initial public offering (IPO) price of ₹70. This remarkable start positions the company among elite firms with a market capitalization reaching ₹1 trillion.

By 10:08 AM, shares of Bajaj Housing Finance were trading at ₹154.9 per share, marking a 121% rise above the IPO price. The company’s valuation stood at ₹1.3 trillion, with the share price hitting a high of ₹160.92 and a low of ₹147 during the trading session.

Market analysts believe that this strong listing is a testament to investors’ confidence in Bajaj Housing Finance’s financial health and strong backing by the renowned Bajaj Group. The company’s consistent growth and attractive valuation made it an appealing proposition for investors.

Ambareesh Baliga, an independent market analyst, advised investors to hold onto the stock for a while, citing the Bajaj Group’s long-term success. “Investors may benefit from keeping the stock as it has the potential to perform well if positive market sentiment continues,” he noted.

Astha Jain, a senior research analyst at Hem Securities, recommended that investors consider booking partial profits at ₹150 per share, while maintaining a core position due to Bajaj Housing Finance’s potential as a long-term wealth generator.

Bajaj Housing Finance, a subsidiary of Bajaj Finance, provides financial services to individuals and corporate entities for the purchase or renovation of properties. It also offers loans against property and provides financing to developers of residential and commercial properties.

The company’s ₹6,560-crore IPO saw overwhelming demand, with a subscription rate of 63.61 times. Analysts value the company at a price-to-book value multiple of 3.2x at the end of Q1 of the current financial year.

Bajaj Housing Finance is India’s second-largest housing finance company, with an asset under management of ₹97,071 crore. It boasts a gross non-performing asset (GNPA) ratio of 0.28% and a net non-performing asset (NNPA) ratio of 0.11%, the lowest among major housing finance corporations.

The company has experienced a growth rate in AUM of 30.9% alongside profit growth of 56.2% over the fiscal period 2022-2024. Given its association with the Bajaj brand, Bajaj Housing Finance enjoys substantial brand equity in the market.

As projected, the housing finance industry is set to grow between 13% and 15% over the next three years, presenting Bajaj Housing Finance with considerable opportunities to capitalize on this growth trajectory. Market expert Shivani Nyati from Swastika Investmart advised investors who secured positions in the IPO to consider booking profits while employing a stop loss strategy at ₹135 to manage risks effectively.