Bajaj Housing Finance Share Price Achieves Remarkable Gains Post IPO
Bajaj Housing Finance IPO Overview
Bajaj Housing Finance shares more than doubled the IPO investors' money with a bumper listing gain on September 16, slightly beating the Street expectations and grey market estimates. The IPO got a record-breaking subscription worth Rs 3.23 lakh crore last week.
Expected Listing Price and Premium
According to the grey market premium (GMP), Bajaj Housing Finance shares were expected to list at nearly 110 percent above the issue price of Rs 70 per share, translating into a potential premium of Rs 77 per share. The excitement surrounding the stock had pegged robust listing gain, leading many market participants to consider booking profits immediately.
Long-Term Prospects for Bajaj Housing Finance
Market analysts recommend a long-term view on Bajaj Housing Finance, as the company’s solid fundamentals, coupled with the overall positive outlook for the housing finance sector, could yield better returns over time. For those who secured allotments, analysts advise holding shares to benefit from the company’s future growth prospects.
Growth Strategies and Market Potential
Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers, suggested that Bajaj Housing Finance shares could list at a significant premium to its issue price, recommending long-term holding for potential returns.
- Market Share Expansion: The company plans to deepen its relationship with existing customers, onboard new customers, and expand to newer geographies.
- Strong Valuation Metrics: On the valuation front, Bajaj Housing Finance shares command a price-to-book (P/BV) multiple of 3.2x on post-issue equity.
- Impressive Growth Rates: The company’s accelerated AUM growth is driven by a diversified product portfolio and superior asset quality.
Investing Strategies Post-IPO
Rajesh Agarwal, Head of Research at AUM Capital, suggests taking profits if Bajaj Housing Finance listing gains exceed expectations. V.L.A. Ambala, a SEBI-registered research analyst, mentions that based on the IPO’s pricing band, brand value, and market reception, she expects its shares to list within the range of Rs 140-152.
- Consider Partial Profit Taking: Investors may book partial profits if the price reaches approximately Rs 150.
- Long-Term Growth Potential: Future investors should consider holding onto their shares for potential multi-bagger returns.
Bajaj Housing Finance: A Strong Contender
Bajaj Housing Finance Ltd is the second-largest and fastest-growing entity in the housing loan segment, backed by strong management and the Bajaj group's reputation. The company remains focused on individual retail housing loans.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.