Bajaj Housing Finance's Initial Public Offering (IPO) Today: Bajaj Housing Finance's shares made a strong launch on the stock markets today, riding high on bullish market sentiment. The shares were offered for Rs 150 on the BSE, up 114.28 percent from the IPO issue price of Rs 70. Similarly, Bajaj Housing Finance shares were floated on the NSE for Rs 150 on Monday, representing a 114.28 percent premium. With this, the stock joined the privileged club of corporations with a market value of Rs 1 trillion.
The company's market capitalization was at Rs1.3 trillion. So far, the stock has reached a high of Rs 160.92 and a low of INR 147. Analysts believe the listing underlines investors' unwavering faith in the company's strong financials, which are supported by the respected Bajaj Group.
Bajaj Housing Finance's continuous growth, along with its cheap value, made it a highly appealing investment opportunity, they added. Going forward, Ambareesh Baliga, an independent market expert, believes investors should keep the stock for some time.
"We have witnessed an IPO from Bajaj Group after a very long period. "Bajaj Housing is a long-term bet, and investors may hold it for a while as long as the overall sentiment remains positive," he added.
Astha Jain, Senior Research analyst at Hem Securities, feels that investors who received the shares during the IPO allotment should book a partial profit of roughly Rs 150 per share while keeping the company in their portfolio since Bajaj Housing Finance might emerge as a long-term wealth builder.
Bajaj Housing Finance is a subsidiary of Bajaj Finance, one of the most diverse NBFCs in the Indian industry. Bajaj Housing Finance, headquartered in Pune, provides financing to both individuals and corporations for the acquisition and refurbishment of residential or commercial properties. It also offers loans against property for commercial or personal use, as well as working capital for business development. BHFL also provides financing to developers who build residential and commercial buildings, as well as leasing rental discounts to developers and high-net-worth people.
Bajaj Housing Finance's Rs 6,560-crore IPO garnered a strong reaction from investors, with bids for 46,28,35,82,522 shares versus 72,75,75,756 shares issued in the IPO, resulting in a 63.61-times subscription by the last day of subscription.
"This excellent launch reflects the company's solid fundamentals and the market's expectation of its development potential. Investors who were lucky enough to get allotments in the IPO may consider booking profit now, but those who wish to keep their shares may do so by establishing a stop loss around INR 135 as a risk management plan," said Shivani Nyati, Head of Wealth, Swastika Investmart.
