Bajaj Housing Finance IPO Surges 114% Amid Bajaj Twins’ Stock Decline

Bajaj Housing Finance has made a significant impact with its IPO, leading to a notable decline in the shares of Bajaj Finance and Bajaj Finserv. The much-anticipated listing of Bajaj Housing Finance, the largest IPO of 2024 to date, has captured investor attention, causing Bajaj Finance shares to drop by 3.3% and Bajaj Finserv by 3%.

Bajaj Housing Finance IPO: A Blockbuster Debut

Bajaj Housing Finance’s initial public offering (IPO) has seen an extraordinary debut, listing with a remarkable 114% premium. The stock started trading at Rs 150 on both the BSE and NSE, a substantial increase from its issue price of Rs 70. This stellar performance reflects the strong market interest and confidence in the company.

Impact on Bajaj Twins

On the day of Bajaj Housing Finance’s listing, Bajaj Finance shares touched a low of Rs 7,347.10, while Bajaj Finserv’s shares fell to Rs 1,855.30. The dip in Bajaj Finance and Bajaj Finserv stocks highlights the market’s reaction to the new entrant, which has quickly garnered investor focus.

Expert Opinions on Bajaj Housing Finance

According to Master Capital Services, investors are advised to consider Bajaj Housing Finance as a medium- to long-term investment. The company’s strong growth trajectory, extensive footprint in the housing finance sector, and competitive valuation position it favorably against peers.

Shivani Nyati, Head of Wealth at Swastika Investmart, echoed this sentiment, emphasizing the company’s consistent revenue and profit growth. “Bajaj Housing Finance’s impressive financial metrics, combined with its reputable brand and high investor interest, suggest a promising future for the company,” she stated.

Company Overview and Financial Performance

Established as a non-deposit-taking housing finance company (HFC) and registered with the National Housing Bank (NHB) since September 2015, Bajaj Housing Finance specializes in tailored financial solutions for residential and commercial property transactions.

For the fiscal year 2023-24, the company reported a net profit of Rs 1,731 crore, marking a 38% increase from the previous year’s Rs 1,258 crore. Net income also surged by 34% year-on-year to Rs 7,618 crore. Classified as an upper-layer NBFC by the Reserve Bank of India (RBI), Bajaj Housing Finance offers a range of mortgage products, including home loans, loans against property, lease rental discounting, and developer financing.

Current Trading Status

As of 11 a.m. today, Bajaj Housing Finance shares are trading at Rs 157.17 on the BSE, reflecting a 4.8% increase from their listing price.

The remarkable debut of Bajaj Housing Finance and the subsequent decline in Bajaj Finance and Bajaj Finserv stocks underline the dynamic nature of the stock market. Investors keen on housing finance opportunities may find Bajaj Housing Finance a compelling choice given its strong financial performance and growth potential.

Disclaimer: The views, recommendations, and opinions expressed by the experts are their own and do not necessarily reflect the views of Hindi Patrika.