Bajaj Housing Finance had an impressive start in the stock market on Monday, September 16. The company’s shares were listed at ₹150 on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This was a huge jump of 114% from its initial public offering (IPO) price of ₹70.
Experts had predicted this strong performance, largely due to the high demand for the stock. The IPO was oversubscribed by 67.43 times, meaning that for every share available, there were over 67 people trying to buy it.
Additionally, the stock had a high grey market premium, which showed strong interest from investors even before the official listing. This combination of factors led to the successful debut of Bajaj Housing Finance in the stock market.
Bajaj Housing Finance Shares Surge 114%
Bajaj Housing Finance made a powerful entry in the stock market today, with shares opening at ₹150 per share on both NSE and BSE, marking a 114% premium over its IPO price. The company, ranked as the second-largest home loan lender in India by assets under management (AUM), has been one of the most anticipated listings this year. Last week, it saw bids totaling around $38.60 billion.
Prior to its listing, the company’s shares were trading at a grey market premium (GMP) of 120% above the issue price. The ₹6,560 crore IPO was oversubscribed nearly 67 times.
Also: Bajaj Housing Finance IPO Attracts ₹3.2 Lakh Crore in Bids
Bajaj Housing Finance Strong Debut
Shivani Nyati, the Head of Wealth at Swastika Investmart Ltd, explained that Bajaj Housing Finance’s impressive stock market debut was due to the strong trust investors have in the company’s financial health, which is further strengthened by the well-known reputation of the Bajaj Group.
She said, “The company’s consistent growth and its reasonable price made it a very appealing choice for investors.”
On its first day of trading, Bajaj Housing Finance’s stock gained Rs 80 per share, which was slightly higher than the Rs 75 grey market premium that experts had predicted earlier in the day.
Nyati also offered some advice to investors who bought shares during the IPO. She suggested that those who received shares should think about selling them now to make a profit. However, if investors want to keep their shares, she recommended they set a “stop loss” at Rs 135. This means if the stock’s price drops to Rs 135, investors can sell it to limit their losses.
She stressed that it’s important for investors to regularly check how the company is performing and pay attention to overall market conditions before making any decisions.
Nyati added, “This successful debut shows that the company has strong fundamentals and the market believes in its future growth. Investors can either take their profits now or hold onto their shares with a stop loss at Rs 135. However, they must closely monitor both the company’s performance and the market to make the best decisions.”
Also Check: Bajaj Housing Finance IPO
Frequently Asked Questions (FAQs)
Q.1. What was Bajaj Housing Finance’s listing price?
Ans. Bajaj Housing Finance’s shares were listed at ₹150 on both NSE and BSE.
Q.2. How much did the stock price increase from the IPO price?
Ans. The stock price increased by 114% from the IPO price of ₹70.
Q.3. What was the grey market premium on Bajaj Housing Finance shares?
Ans. The grey market premium was around 120% above the IPO price.
Q.4. How oversubscribed was the Bajaj Housing Finance IPO?
Ans. The IPO was oversubscribed by 67.43 times.
Q.5. What investment advice did Shivani Nyati give regarding Bajaj Housing Finance shares?
Ans. Nyati advised considering profit-taking or holding shares with a stop loss at ₹135, while continuously monitoring the company’s performance and market conditions.
