Bajaj Housing Finance Shares Make Impressive Market Debut

Bajaj Housing Finance Limited successfully listed its shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) today, marking a remarkable debut in the market. The shares began trading at ₹150, significantly higher than the issue price of ₹70, reflecting a premium of over 114.29%.

This debut follows a highly anticipated initial public offering (IPO) that opened for subscription on September 9, 2024, and closed on September 11, 2024. The IPO garnered tremendous interest, with an overall subscription of 63.61 times. Qualified Institutional Buyers (QIBs) showed the most enthusiasm, bidding 209.36 times, while non-institutional investors subscribed 41.51 times, and retail investors subscribed 7.04 times. The employee and shareholder portions were subscribed 2.05 and 17.53 times, respectively.

The Bajaj Housing Finance IPO was structured to offer shares through both a new issue of equity shares worth ₹3,560 crore and an offer for sale by Bajaj Finance totaling ₹3,000 crore. This move is in line with the Reserve Bank of India’s directive that higher layer non-banking financial companies (NBFCs) should list on stock exchanges by September 2025.

Expert opinions suggest that those who secured allotments may choose to book profits following the share’s strong listing. However, analysts like Prashanth Tapse of Mehta Equities recommend long-term holding, citing Bajaj Housing Finance’s solid business model and the promising outlook of the housing finance sector over the coming years.

The notable listing performance also highlighted the strong parentage advantage under Bajaj Finance and the prospect for growth in its asset under management (AUM), which has seen a compounded annual growth rate of 30.9% from Fiscal 2022 to 2024.