Bajaj Housing Finance Share Price: A Remarkable Debut
Overview: Bajaj Housing Finance made a stunning entry into the stock market on September 16, being listed at an impressive price of Rs 150, reflecting a remarkable premium of 114%. Investors who had previously acquired shares at Rs 70 witnessed their investments more than double, as the stock surged on its debut. The shares quickly hit the upper circuit limit of 10%, enabling early investors to enjoy substantial multibagger returns.
Subscription Success
The IPO of Bajaj Housing Finance saw overwhelming interest from investors, with the issue being subscribed over 68 times. This strong demand not only underlines investor confidence but also piqued interest in the stock’s future potential amidst a robust housing loan market environment.
What Should Be Done If You Missed the IPO?
Advice for Non-Subscribers: For those who were unable to secure shares in the public offering, there is no need for disappointment. According to VLA Ambala, co-founder of SMT and a SEBI-registered research analyst, this could still be an opportunity to enter the stock. He suggests that investors willing to take risks could consider purchasing Bajaj Housing Finance shares at a price point between Rs 165-175. For those already holding shares, even a dip to Rs 130 should not deter investors from retaining at least 50% of their holdings.
Future Price Expectations
Ambala is optimistic about the stock’s long-term potential, forecasting a target price of between Rs 300 and Rs 800. He notes that while this target may seem ambitious, the increasing demand for housing loans and the growing population could propel the stock to such heights.
Expert Opinions
Narendra Solanki, Head of Equity Research at Anand Rathi Shares and Stock Brokers, shares a positive outlook on the overall fundamentals of Bajaj Housing Finance, asserting that the companyโs business growth trajectory appears promising. He emphasizes that the current return profile is likely to improve, making it an attractive investment option.
In contrast, Rajesh Aggarwal, Research Head at AUM Capital, recommends considering LIC Housing Finance shares instead, as he believes they present better valuation opportunities compared to Bajaj Housing Finance.
Details of the IPO
| Category | Amount (in crore Rs) |
|---|---|
| Total Issue Size | 6,560 |
| Offer for Sale | 3,560 |
| Fresh Issue | 3,000 |
Market Performance Post-Listing
Following its remarkable listing, Bajaj Housing Finance shares not only hit the upper circuit but also concluded trading on the debut day at Rs 164.99, marking a staggering 135% gain from the issue price, which was set between Rs 66 and Rs 70. This impressive performance pushed the market capitalization of the company close to Rs 1.4 lakh crore, highlighting its strong market position from the outset.
In summary, despite the rapid rise in share prices, the underlying fundamentals and market dynamics suggest that Bajaj Housing Finance may continue to be a worthwhile investment for those considering entering the housing finance arena.
