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The recent listing of Bajaj Housing Finance on the stock market has sparked interest among investors who missed the initial public offering (IPO) opportunity. Despite the stock's impressive 135% gain on its debut day, experts are urging a cautious approach, emphasizing the importance of long-term growth and individual risk tolerance.
Bajaj Housing Finance shares soared to Rs 150 on their first day of trading, a 114% premium over the IPO price of Rs 70. The company's market capitalization now exceeds Rs 1.37 lakh crore, highlighting the strong demand for its shares. The IPO itself was a resounding success, attracting nearly 64 times subscription from institutional buyers, with bids exceeding 4,627 crore shares against 72.75 crore shares offered.
While the initial surge in the stock price might tempt investors who missed the IPO, experts advise against succumbing to fear of missing out (FOMO). V.L.A. Ambala, a SEBI-registered Research Analyst, suggests a strategic approach, recommending buying Bajaj Housing Finance stock in the range of Rs 165–175, while holding onto 50% of investments in case of a potential dip to Rs 130. She also sets a long-term target price expectation between Rs 300 and Rs 800, citing the growing demand for housing loans and favorable demographic trends as potential growth drivers for the company.
Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers, echoes the sentiment of long-term growth, highlighting the strong fundamentals and outlook for Bajaj Housing Finance. He believes the company's business will continue to expand at a healthy pace, improving its return profile. However, Rajesh Agarwal, Head of Research at AUM Capital, recommends investors consider LIC Housing as a potentially better investment based purely on valuation.
Bajaj Housing Finance's IPO was a combination of a fresh equity share issue of up to Rs 3,560 crore and an offer-for-sale (OFS) of equity shares worth Rs 3,000 crore by parent Bajaj Finance. This move was driven by the Reserve Bank of India's (RBI) regulations, which mandate that upper-layer non-banking finance companies must be listed on stock exchanges by September 2025.
As a non-deposit-taking housing finance company, Bajaj Housing Finance caters to the growing need for financial solutions in the real estate sector. Its comprehensive range of mortgage products, including home loans, loans against property, lease rental discounting, and developer financing, caters to a wide spectrum of customers in the market.
Source: Missed Bajaj Housing Finance IPO lottery? Check if you should buy or not after 135% listing day gain