PC: The Financial Express
The star performer in the financial domain was Bajaj Housing Finance, which romanced its listing day on Monday, September 16, with a stellar show. Shares got listed at Rs 150 each on both the NSE and BSE, commanding an astonishing premium of 114 percent over the IPO issue price of Rs 70 per share. This stellar performance has seen euphoric responses from investors and analysts, who hint that the future of the company is bright.
These listing gains of Rs 80 per share outpaced the grey market premium, as the stock changed hands at a GMP of Rs 75 in the early morning hours on September 16. Post successful listing, shares of Bajaj Housing Finance zoomed to Rs 164.99, representing a strong gain of 135 percent over the IPO price. The rally took the company’s market capitalization to above Rs 1.1 lakh crore against an estimated Rs 58,297 crore at the IPO allotment price.
The Rs 6,560 crore IPO received an unprecedented response, with subscriptions amounting to Rs 3.23 lakh crore. The strong demand reflected investor confidence in the growth prospects of Bajaj Housing Finance, apart from its market standing. Analysts welcomed the company’s solid fundamentals and said that the housing finance sector was expected to shine in the future also, hence the long-term investors might see better returns by holding on to the shares.
Head of Equity Research-Fundamental, Narendra Solanki of Anand Rathi Shares & Stock Brokers said the company was offering growth prospects and hence the investors should stay invested as a continuous process to reap benefits from its future growth. Having an open-hearted chat with CNBC-TV18, Sanjiv Bajaj said rate cuts hardly affect demand and reassured the stakeholders about the stability of the company against volatility in interest rates.
The main issue of the IPO was to meet the regulatory requirements of the RBI that requires all upper-layer non-bank finance companies to list themselves on stock exchanges before September 2025. The money collected through the IPO will be utilized for strengthening Bajaj Housing Finance’s capital base, which would in return strengthen its financial position to engage in future plans and expansion programs. The company, registered with the National Housing Bank in 2015, provides customized finance for the purchase and renovation of residential and commercial properties.
Accredited by the RBI as a distinguished “upper layer” NBFC, Bajaj Housing Finance offers mortgage products ranging from home loans to loans against property, lease rental discounting, and developer financing. The broad-based portfolio makes the company a significant player in the housing finance segment, thus keeping pace with customer needs and further helping the growth of the real estate sector.
The impressive market début presented together with strong post-listing performance indicates that Bajaj Housing Finance has resilience in the market. Innovation, customer-centricity in financial solutions, and adherence to regulatory necessities set bedrock for sustained growth and value creation for the company. While Bajaj Housing Finance undertakes a dynamic financial landscape, stakeholders are assured of continued stability, growth, and value enhancement in the foreseeable future.
