Introduction
Bajaj Housing Finance Limited (BHFL) made a significant impact on the stock market with its initial public offering (IPO) in September 2024. The IPO attracted strong investor interest, leading to an impressive debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). BHFL offers a variety of housing finance products, including home loans and loans against property.
IPO Performance
On its listing day, September 16, 2024, Bajaj Housing Finance shares opened at ₹150 per share, a 114% premium over the issue price of ₹70. This spectacular debut underscored investor confidence, as the IPO was oversubscribed by 67.43 times. The strong demand was also reflected in the grey market premium, which predicted a substantial rise in share value before listing.
The IPO was open for subscription from September 9-11, 2024, and raised ₹6,560 crore. Shares were allotted on September 13, with significant enthusiasm from institutional buyers and retail investors alike. Post-listing, the stock price quickly surged beyond the opening price, hitting an intraday high of ₹161.
Market Sentiment and Future Outlook
Investors were attracted to the IPO due to BHFL’s strong fundamentals and its position under the Bajaj Group, a well-reputed conglomerate. Analysts believe that Bajaj Housing Finance has strong growth potential, especially as the Indian housing finance market expands.
Currently, BHFL shares are trading around ₹158-₹161, showing continued strength post-listing.
Conclusion
Bajaj Housing Finance’s stock debut reflects the growing interest in India’s housing finance sector. For long-term investors, the company offers a robust growth trajectory, making it a stock to watch in the coming months. Investors who received IPO allotments may consider holding for long-term gains or setting stop losses based on market trends.
