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The impending listing of Bajaj Housing Finance shares on the Dalal Street is generating significant excitement, fueled by the robust response to its initial public offering (IPO). This IPO has become one of the most anticipated listings of the year, largely attributed to the company's strong financial performance and the backing of the reputable Bajaj Group.
Industry experts are expressing optimistic views on the IPO's debut. Shivani Nyati, Head of Wealth at Swastika Investmart, highlights the company's consistent growth in both revenue and profits, alongside the credibility provided by the Bajaj brand. She believes the reasonable valuations and the confluence of strong financials, brand trust, and investor interest will contribute to a successful market debut.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, shares similar optimism. He points to Bajaj Housing Finance's leading position in the Indian housing finance sector, boasting an impressive Rs 97,071 crore in assets under management (AUM). Tapse emphasizes the company's ability to capitalize on the burgeoning demand within the industry, citing its historical AUM growth rate of 30.9% between FY22 and FY24. He predicts a robust listing, with the potential for investors to double their wealth on the listing day, even exceeding initial expectations.
Tapse advises conservative investors to consider profit-booking if listing gains exceed initial projections, while long-term investors should hold onto the stock to benefit from future growth in the housing finance sector. He highlights the IPO's attractive pricing at Rs 70 per share compared to industry peers. He emphasizes Bajaj Housing Finance's robust credit evaluation framework, focus on low-risk, high-growth mortgage-centric markets, and the backing of the Bajaj brand, making it a compelling long-term investment opportunity.
Leading up to the market debut on September 16, the grey market premium (GMP) suggests a listing price of Rs 148.5 for Bajaj Housing Finance shares. This represents a potential gain of 112.14% for investors. However, while the GMP offers a glimpse into potential listing gains, it's crucial to remember that various factors can influence the actual listing price.
While the article suggests potential for significant gains, it's essential for investors to exercise caution and conduct thorough research before making investment decisions. Seeking advice from qualified financial professionals is always recommended to make informed choices aligned with individual risk profiles and investment goals.
Source: Bajaj Housing Finance IPO: Will it double investors' wealth on market debut?