Bajaj Housing Finance shares saw a decline of more than 4% during early trading on Monday, October 14, as the one-month lock-in period for shareholders comes to an end. This drop in share price reached as low as ₹144 per share on the Bombay Stock Exchange (BSE), a decrease of 4.50%.
Today marks a significant point for Bajaj Housing Finance, as approximately 12.6 crore equity shares—equating to a 1.5% stake in the company—become available for trading. This release of shares follows the conclusion of the initial one-month lock-in period, as noted by IIFL Securities.
Looking ahead, another 12.6 crore shares will be freed for trading when the three-month lock-in period ends on December 12, 2024. It is crucial to note that the end of this lock-in does not necessarily indicate that all shares will be sold in the market. Instead, it signifies that these shares are now eligible for trading. Those looking to invest in this IPO need to be aware of these changes in this share.
Bajaj Housing Finance made a remarkable debut on the stock market on September 16. Upon listing, the shares doubled the investors' initial investment, opening at ₹150 per share on the BSE—an impressive 114.29% increase from the issue price of ₹70 per share.
The stock continued its upward trend, peaking at ₹188.45 on September 18. However, it has since faced a decline, dropping to ₹129.85 per share by October 8.
The initial public offering (IPO) for Bajaj Housing Finance raised ₹6,560 crore, running from September 9 to September 11. The IPO comprised a fresh issue of 50.86 crore equity shares, amounting to ₹3,560 crore, and an offer for sale of 42.86 crore shares worth ₹3,000 crore. The price band for the IPO was established at ₹66 to ₹70 per share. Given the company's strong fundamentals, many brokerages recommended that investors consider subscribing to the Bajaj Housing Finance IPO.
Bajaj Housing Finance is a non-deposit-taking housing finance company, with home loans accounting for 57.8% of its assets under management (AUM) of ₹91,370 crore as of March 31, 2024. The company has demonstrated a robust compound annual growth rate (CAGR) of 31% in its AUM throughout FY22 to FY24. It has secured the largest share in the prime housing segment, which constitutes over 20% of the market.
As of 10:03 am, Bajaj Housing Finance shares were trading at ₹144.75 per share, reflecting a decrease of 4.01%. The company's current market capitalisation exceeds ₹1.20 lakh crore, showcasing its substantial presence in the housing finance sector.
As Bajaj Housing Finance navigates the post-lock-in period, investors should carefully assess the implications of the available shares on the market. With an established growth trajectory and a leading position in the housing finance sector, many are encouraged to invest in this IPO. The robust fundamentals and strategic growth plans underpin the company's potential for future gains, making it a strong candidate for investment.
For android only