With Bajaj Housing Finance stock’s blockbuster listing on 16 September, investors who either missed the IPO allotment or missed applying for the IPO altogether might be wondering if they should buy the shares now. Experts suggest cautious buying for long term growth, considering their individual risk-taking capacity.
Bajaj Housing Finance shares listed at Rs 150 on Monday, with 114 percent premium over IPO price of Rs 70. Soon after, the stock climbed further to hit the upper circuit at Rs 164.99. Bajaj Housing Finance market capitalisation stands at above Rs 1.37 lakh crore, per NSE data.
The Rs 6,560-crore initial public issue of Bajaj Housing Finance received nearly 64 times subscription in a 3-day window amid overwhelming participation from institutional buyers. The initial share sale got bids for 4,627 crore shares against 72.75 crore shares on offer.
Also read | Bajaj Housing Finance market valuation tops Rs 1 lakh crore
Bajaj Housing Finance business expected to grow at a healthy pace
Narendra Solanki - Head - Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said that the overall fundamentals and outlook for the company are good, and its business should continue to grow at a healthy pace and improve upon current return profile.
“Investors choosing to add the stock on listing day should have a long term perspective on Bajaj Housing Finance stock, and should not look for short term opportunities,” he said.
However, Rajesh Agarwal - Head Research - AUM Capital, recommended investors that LIC Housing is considered a better investment based strictly on valuation.
Bajaj Housing Finance IPO had a fresh issue of equity shares of up to Rs 3,560 crore and an offer-for-sale (OFS) of equity shares to the tune of Rs 3,000 crore by parent Bajaj Finance.
The share sale was carried out to comply with the Reserve Bank of India's (RBI) regulations, which mandate that upper-layer non-banking finance companies must be listed on stock exchanges by September 2025.
It is a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015. The company provides financial solutions for buying and renovating residential and commercial properties.
It has been classified as an “upper layer” NBFC by the RBI in India. Its extensive mortgage products include home loans, loans against property, lease rental discounting, and developer financing.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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