Bajaj Housing Finance Share Price Updates: Stock ends at ₹165 apiece on NSE, 135.71% premium to IPO price

The stock ended listing day at ₹165 on NSE, a 135.71% premium to the IPO price of ₹70, and at ₹164.99 on BSE, a 135.70% premium.

According to a report from InCred Equities, BHFL faces competition from large housing finance companies (including LIC HF), leading private banks, and State Bank of India (SBI) due to their widespread presence and competitive rates. However, Bajaj Housing Finance is increasingly popular due to its strong focus on customer service. The company is known for its quick turnaround time thanks to advanced digital processes in loan handling, as well as its high level of digitization aimed at improving simplicity and efficiency in customer service. These features make Bajaj Housing Finance an attractive choice for low-risk salaried customers seeking home loans. Smaller banks and HFCs are not seen as major competitors to Bajaj Housing Finance, primarily due to their higher interest rates. This situation leads to targeted balance transfers from smaller HFCs.

The stock was trading at ₹165 per share on NSE, marking a 10% gain at 14:56 IST, and at ₹164.99 per share on BSE, showing a 9.99% rise.

The company provides a variety of financial options for both individual and business customers. A significant portion of the company's customers have high credit scores and are salaried individuals. In FY24, home loans made up approximately 58% of the Assets Under Management (AUM), with 88% of these belonging to salaried customers, 4% to self-employed professionals, and 8% to self-employed non-professionals. The average size of a home loan was ₹4.6 million, with an average loan-to-value ratio of 69.3% as of Q1FY25.

The founder of Kejriwal Research and Investment Services, Arun Kejriwal, suggests that investors who choose to retain the stock despite multibagger gains in a single week could hold the scrip while keeping their stop loss below the stock's weighted average, which is now at ₹155. Further price growth for the scrip might be anticipated if the stock maintains above this weighted average after listing.

The stock was trading at ₹165 per share on NSE, marking a 10% gain at 13:31 IST, and at ₹164.99 per share on BSE, showing a 9.99% rise.

“Bajaj Housing Finance has experienced a remarkable growth rate of 30-32% CAGR over the past year. It holds the largest share in the prime housing segment, accounting for over 20%. Additionally, it enjoys an 85% share of the salaried employees' loan portfolio. Looking ahead, Bajaj Housing Finance anticipates maintaining a similar growth rate of around 30-35% YoY. This is notably higher compared to industry growth at approximately 13-14% YoY. In essence, Bajaj Housing Finance is expanding at double the rate of industry growth,” said Nipun Lodha, Director - Corporate Finance, PL Investment Banking PL Capital - Prabhudas Lilladher. 

The stock was trading at ₹165 per share on NSE, marking a 10% gain at 12:49 IST, and at ₹164.99 per share on BSE, showing a 9.99% rise.

“Bajaj Housing Finance has a well defined credit evaluation and risk management practices resulting in lowest GNPA and NNPA among our Peers in Fiscal 2024. However, we believe the company is a good portfolio pick. We suggest investors to book atleast 50% profits on the listing day itself, rest can be held for long term investment. In case, fresh investors are willing to invest, 135 - 140 levels can be considered suitable,” said Mahesh M. Ojha,  AVP – Research & Business Development at Hensex Securities Pvt Ltd.

Shares of Bajaj Finance and Bajaj Finserv were among the laggards of Nifty 50 after the listing of Bajaj Housing Finance. 

“Both the stocks witnessed a strong run ahead of the listing of theBajaj Housing Finance, but now witnessing a profit booking in today's session. For now Bajaj Finance is in no trading zone, where dip towards ₹7,000 can be bought and on bounce ₹7,600 - 7,700 as resistance, for Bajaj Finserv, it remains a strong counter, with ₹1,770 as strong support and ₹2,000 as next resistance,” said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.

During the listing ceremony, Sanjiv Bajaj, the Chairman and managing director of Bajaj Finserv Ltd, expressed his deep appreciation for the strong response witnessed in the last few minutes and anticipates a consistent credit growth of 12-15% in the housing finance industry, as per CNBC-TV18 report.  He stated that demand remains unaffected by rate cuts and cited that he observed no impact on demand even when rates were higher.

The stock was trading at ₹159.25 per share on NSE, marking a 6.17% gain at 11:19 IST, and at ₹159.32 per share on BSE, showing a nearly 6.21% rise.

Bajaj Housing Finance listed at 150, touched high at 160 with average traded price of 154 at 10:05 IST. Bajaj Finance holds 88.70 % in Bajaj Housing Finance valued at 110.83 crores. Which is 768 / share SoTP value of Bajaj Housing Finance in Bajaj Finance stock price of 7400 ~ about 10 % +.
 

For Bajaj FinServ, though its holding in Bajaj Finance of 52%, the value of Bajaj Housing Finance reflected in it market cap of 57,600 crores. Which is about 360 / share. ( CMP: Bajaj FinServ 1858 ~ about 20 %).

Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, believes that Bajaj brand has always rewarded investors and Housing Finance business gives similar opportunity to invest in one of India’s leading players in the housing finance sector. As expected IPO debuted double allottees wealth on the listing day.

Post listing, Tapse recommends conservative investors to choose profit booking, as listing gain is over and above their expectations, while long term investors can continue holding for long term growth as the sector outlook remains very optimistic given the company's well-positioned business model. “We believe housing as a sector will continue to deliver and perform well in the next 3-4 years and Bajaj Housing can tap the opportunity to lead the sector,” added Prashanth.

The stock was trading at ₹159.25 per share on NSE, marking a 6.17%  gain at 10:27 IST, and at ₹158.27 per share on BSE, showing a nearly 5.51% rise.

Post-listing of the stock, Shivani Nyati, Head of Wealth of Swastika Investmart Ltd, said, "Bajaj Housing Finance share price made a spectacular stock market debut, listing at Rs. 150 per share, a staggering 114% premium over its issue price of ₹70. This blockbuster performance was widely anticipated, given the IPO's overwhelming subscription of 67.43 times and the sky-high grey market premium.

Investors who were fortunate enough to secure allotments in the IPO may consider booking profit now, but those who want to hold their positions may do so by potentially setting a stop loss at ₹135 as a risk management strategy. However, it's essential to continuously monitor the company's performance and market conditions for informed decision-making."

Bajaj Housing Finance share price made a bumper debut on the bourses today. On NSE and BSE, Bajaj Housing Finance share price opened at ₹150 per share, 114.29% higher than the issue price of ₹70. 

The non-deposit-taking housing finance company opened for subscription on Monday, September 9 and ended on Wednesday, September 11. By the end of the last bidding day, the issue saw robust response from non-institutional investors (NIIs) (41.51 times), qualified institutional buyers (QIBs) (209.36 times), followed by retail investors (7.04 times). The employee portion saw a subscription of 2.05 times, and the shareholder portion was oversubscribed by 17.53 times. Bajaj Housing Finance IPO subscription status was 63.61 times on the third day, according to BSE data.

Bajaj Housing Finance IPO was subscribed 7.51 times on the second day, and the issue was booked 2.02 times on the first day of subscription.

“Bajaj Housing Finance Ltd saw an extraordinary demand for its offering, with a subscription rate surpassing 67 times. We anticipate a strong debut on the stock exchanges on Monday, with an expected premium of 107% above the upper band price,” said Prathamesh Masdekar, Research Analyst, StoxBox.

"Considering company’s strong parentage brand “BAJAJ” along with its solid position in the housing finance space with ₹9,7071 cr AUM which is well-positioned itself to capitalise the industry demand and assuming to deliver impressive growth in future, like historical CAGR growth of 30.9% in AUM from Fiscal 2022 to 2024, we expect the IPO to make a robust debut and price of the company may double allotted investors' wealth or even do more than on the listing day.

Post listing, we recommend conservative investors to choose profit booking, if the listing gain is over and above our expectations, while long term investors can continue holding for long term growth as the sector outlook remains very optimistic given the company's well-positioned business model," said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.

"Bajaj Housing Finance, backed by the reputable Bajaj Group, is set for a strong stock market debut. The IPO has garnered immense investor interest, evidenced by a subscription rate of 67.4 times and a sky-high grey market premium (GMP) of ₹75.5 (107.8%). This enthusiasm reflects the company's strong fundamentals and market anticipation.

The combination of strong financials, a reputable brand, and immense investor interest positions Bajaj Housing Finance for a potentially successful listing," said Shivani.

Bajaj Housing Finance IPO GMP today is +75. This indicates Bajaj Housing Finance share price were trading at a premium of ₹75 in the grey market, according to investorgain.com.

The estimated listing price of Bajaj Housing Finance share price was indicated at ₹145 apiece, considering the upper end of the IPO price band and the current premium in the grey market, representing an 107.14% increase from the IPO price of ₹70.

After analysing the grey market activities from the last 26 sessions, it is evident that today's IPO GMP is on an upward trend, indicating a strong potential for listing. As indicated by experts on investorgain.com, the GMP ranges from ₹36 to ₹84, with ₹36 being the lowest and ₹84 being the highest.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.