Bajaj Housing Finance Share Price Rises Significantly in Record IPO

Monday, 16 September 2024, 04:50

Bajaj Housing Finance share price soared following its record IPO, reflecting investor confidence and the booming property market. This extraordinary rise in share value highlights the company's position in India's thriving mortgage sector.
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Bajaj Housing Finance Share Price Rises Significantly in Record IPO

Bajaj Housing Finance Share Price Surge

Bajaj Housing Finance made headlines as its shares jumped by as much as 130 percent to Rs161 shortly after debuting on India’s stock exchanges, following a blockbuster $782 million IPO that drew bids exceeding 64 times the shares offered.

Company Overview and Expansion

  • Bajaj Housing Finance, part of the Bajaj Group, has experienced significant growth, with assets under management rising by 31 percent to Rs970 billion ($12 billion).
  • This growth aligns with the rapid expansion of India’s property market.

Market and Regulatory Insights

The listing occurs alongside the Reserve Bank of India's directive for major non-bank lenders to pursue public offerings by 2025, aiming to enhance regulation in this crucial sector.

Chairman Sanjiv Bajaj highlighted the positive timing of the company's listing, emphasizing diversification of funding amidst a booming equity market driven by retail investors.

Financial Performance and Loan Portfolio Management

  1. Bajaj Finance has increased its customer base by 21 percent over the past year to reach 88 million customers.
  2. Despite a rise in loan losses, the company reported a 14 percent increase in profit after tax for the quarter ending June.
  3. Future projections anticipate improvements as the company adjusts its loan strategies to mitigate risks.

With consumers increasingly relying on loans for purchases, Bajaj Housing Finance's strong performance signals its essential role amidst competitive challenges from other lenders.


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.


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