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Missed Bajaj Housing Finance IPO lottery? Check if you should buy or not after 135% listing day gain

Submitted by admin on September 21st, 2024

After witnessing Bajaj Housing Finance stock on 16 September as a blockbuster, the investors who have not got IPO allotment, or the one who has not applied for the IPO might think that whether or not they should buy the shares now?. Analysts advice people to invest with a medium term perspective for capital appreciation and based on their risk profiles.

Bajaj housing finance shares listed at Rs 150 on Monday with a 114percent premium over the issue price of Rs 70. Later on, it went up to the upper circuit at Rs 164 soon after that they fizzled out. 99. The Firm has a market capitalisation of more than 1 Billion Rupees in the case of Bajaj Housing Finance. That amounted to 37 lakh crore, as per National Stock Exchange data.

The Rs 6,560 crore IPO of Bajaj Housing Finance was subscribed 64 times within a three-day window and attracted a lot of demand especially from the institutional investors. In the first share sale it received numbers of bids for 4,627 crore shares out of 72. 75 crore of its shares that are available for floating.

Narendra Solanki, Head – Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said that the company has healthy numbers in overall numbers position and the business should continue to grow at a healthy rate and further improve over current return profile.

“Those willing investors who are willing to take the stock on the listing day must possess long term view on Bajaj Housing Finance stock, and they should not look for short term gains,” he said.
But Rajesh Agarwal – Head Research – AUM Capital suggested to the investors that LIC Housing is a better bet if looked purely from the valuation parameter.

Bajaj Housing Finance then offered the IPO comprising of new assets up to Rs 3,560 crore along with ‘offer for sale’ (OFS) which is Rs 3,000 crore stake by its parent Company Bajaj Finance.

It said the share sale was necessary to meet RBI requirements that the upper-layer NBFCs must get listed on the stock exchanges by September 2025.

It is a non-deposit taking housing finance company which is also listed with the National Housing Bank since September, 2015. It offers credit services for purchase of and/or repair of residential and business premises.

The RBI of India has placed it in the category of an ‘Upper Layer Non-Banking Finance Company’. Its major mortgage products comprise home loans, loans against property, lease rental discounting, and developer financing.