Bajaj Housing Finance shares surged by up to 10% on Tuesday, September 17, reaching the upper circuit limit at Rs 181.5, following a strong IPO debut. The stock later cooled off slightly, trading up about 8% at Rs 178. On its listing day, Bajaj Housing Finance closed at Rs 165, marking a 135% gain from its IPO price of Rs 70.
Phillip Capital on Bajaj Housing Finance
Phillip Capital issued its first ‘Buy’ rating for the stock today, setting a target price of Rs 210, which implies a potential upside of 27%.
Phillip Capital highlighted the company’s strong prospects, particularly in the Rs 50 lakh home loan segment, which constitutes 65% of India’s home loan market.
The brokerage forecasts Bajaj Housing Finance’s balance sheet to exceed Rs 2 lakh crore within three years. They also expect near-term credit costs to remain benign, supporting the company’s growth outlook.
Record IPO Subscription
The IPO, which raised Rs 6,560 crore, attracted a record Rs 3 lakh crore in bids, making it India’s largest-ever subscription. Analysts are advising investors to hold the stock for long-term gains, given the company’s robust fundamentals. For those who missed the IPO, cautious buying with a long-term perspective is recommended.
IPO Details and Regulatory Compliance
The IPO consisted of a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore by parent company Bajaj Finance. The share sale was part of compliance with the Reserve Bank of India’s (RBI) regulations, which require upper-layer non-banking finance companies to be listed by September 2025.
Following its debut, Bajaj Housing Finance’s market capitalization reached Rs 1.37 lakh crore, nearly 2.4 times the estimated Rs 58,297 crore valuation at the IPO allotment price.