Bajaj Housing Finance Share Price Soars on Stock Market Debut, Delivering Multibagger Returns
Bajaj Housing Finance shares made a stellar debut on the stock market, delivering multibagger returns to investors upon listing. The shares were listed with a premium of over 114% on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), significantly outperforming expectations.
On Monday, Bajaj Housing Finance shares opened at ₹150 per share on the BSE, reflecting a 114.29% premium compared to the issue price of ₹70 per share. Similarly, on the NSE, the stock started trading at ₹150 per share, also marking a 114.29% premium. This impressive listing on both exchanges reinforced the strong investor confidence in Bajaj Housing Finance, which has quickly emerged as one of the most anticipated initial public offerings (IPOs) of the year.
Analysts Predicted Strong Listing for Bajaj Housing Finance Shares
The robust IPO listing of Bajaj Housing Finance shares was largely in line with market expectations. Several analysts had forecasted a strong debut for the stock, largely driven by the grey market premium (GMP), which signaled potential multibagger returns even before the listing. The positive sentiment around the stock, fueled by the company’s strong financials and market position, contributed to the overwhelming demand for the IPO.
One of the primary reasons for the remarkable performance of Bajaj Housing Finance shares was the massive demand for its IPO. The offering received record-breaking subscriptions, with total bids exceeding ₹3 lakh crore. This overwhelming response was a clear reflection of investor confidence in the company’s growth potential and future prospects.
The IPO of Bajaj Housing Finance was subscribed a staggering 63.61 times. It received bids for more than 4,628 crore equity shares, significantly outpacing the 72.75 crore shares on offer. The total value of applications for Bajaj Housing Finance shares stood at approximately ₹3.24 lakh crore, underscoring the immense interest in the company’s public offering.
The bidding period for the Bajaj Housing Finance IPO opened on September 9 and concluded on September 11. The allotment of shares was finalized on September 12, and the highly anticipated listing took place on Monday, September 16.
Details and Market Response
The price band for the Bajaj Housing Finance IPO was set between ₹66 and ₹70 per share. At the upper end of this price band, the company successfully raised ₹6,560 crore. This amount included a fresh issue of 50.86 crore equity shares, valued at ₹3,560 crore, and an offer-for-sale (OFS) component of 42.86 crore shares, worth ₹3,000 crore. The significant funds raised through the IPO will likely support the company’s plans for growth and expansion in the housing finance market.
The Bajaj Housing Finance IPO was managed by a consortium of prestigious financial institutions, including Kotak Mahindra Capital Company Ltd, Axis Capital, BofA Securities India Ltd, Goldman Sachs (India) Securities, JM Financial, SBI Capital Markets, and IIFL Securities, who acted as the book-running lead managers for the issue. The IPO registrar was Kfin Technologies.
Investors’ enthusiasm for Bajaj Housing Finance shares was driven not only by the strong market demand for its IPO but also by the company’s proven track record in the housing finance sector. As the largest non-deposit-taking housing finance company (HFC) promoted by Bajaj Finance Ltd., Bajaj Housing Finance has been actively involved in the mortgage lending business since FY18. Over the years, it has developed a solid reputation as a reliable and growth-oriented player in the housing finance industry.
As of FY24, Bajaj Housing Finance’s assets under management (AUM) stood at an impressive ₹97,071 crore, showcasing the company’s substantial growth. The AUM has grown at a compound annual growth rate (CAGR) of 30.9% between FY22 and FY24, highlighting the company’s ability to scale its business and meet the growing demand for housing finance in India.
Strong Growth Potential for Bajaj Housing Finance Shares
Analysts are optimistic about the future growth prospects of Bajaj Housing Finance shares. The company’s impressive growth in assets under management, coupled with its strong market position, makes it well-positioned to capitalize on the increasing demand for housing finance in the country. With the government’s push for affordable housing and the growing middle class in India, the housing finance sector is expected to see continued growth in the coming years.
Bajaj Housing Finance’s ability to deliver consistent growth, combined with its strategic position in the market, has made its shares an attractive option for investors. Many analysts recommend holding Bajaj Housing Finance shares for the medium to long term, as they believe the company is poised to deliver strong returns over time.
The company’s focus on expanding its mortgage lending business, improving its operational efficiency, and leveraging technology to enhance customer experience will likely contribute to its continued success in the housing finance sector. Furthermore, Bajaj Housing Finance’s strong backing from its parent company, Bajaj Finance Ltd., provides additional confidence in its long-term growth potential.
For investors who were allotted shares in the IPO, the significant gains upon listing provide an excellent opportunity for returns. However, those looking at a longer investment horizon may see further value appreciation in Bajaj Housing Finance shares as the company continues to grow its business and capitalize on emerging opportunities in the housing finance market.
In conclusion, the stellar debut of Bajaj Housing Finance shares has not only rewarded investors with multibagger returns but has also solidified the company’s position as a leader in the housing finance industry. With a strong market outlook and a well-executed business strategy, Bajaj Housing Finance shares remain a promising investment for both short-term gains and long-term growth.
You might also be interested in – Bajaj Housing Finance IPO price band at ₹66-₹70 per share. Here’s everything you need to know about the issue date, lot size, and other important details.
