Bajaj Housing Finance lists at 115% premium; bigger than next 4 peers combined

Bajaj Housing Finance (BHF) made a strong debut on domestic bourses with the stock listing at ₹150, nearly 115% above its initial public offer (IPO) price of ₹70. Subsequently, the stock soared 10%, its highest tradeable limit of the day, to close at ₹165.

The housing finance company’s market capitalisation stood at ₹1.37 lakh crore on the debut day, making it the most valuable in the segment. The market value of Bajaj Housing Finance on Monday was more than the total market cap of the next four largest housing finance companies including HUDCO, LIC Housing, PNB Housing and Aadhar Housing.

Nearly 70 crore shares of Bajaj Housing were traded on the exchanges combined amid the frenzied appetite for the stock.

Analysts see further gains for the stock in the near term.

“Given the prevailing market euphoria, a rally of another 20-30% in the stock is easily foreseeable in the next couple of days,” said Raj Gaikar, research analyst at Samco Securities. “Post-rally, some profit taking might happen and that will create an optimal entry point for new investors with a long-term horizon, who missed the IPO bus.”

The ₹6,560 crore initial public offering (IPO) of Bajaj Housing was subscribed 64 times, underscoring investor appetite for India’s booming primary markets. The IPO attracted bids amounting to nearly ₹3.23 lakh crore, the highest-ever demand in Indian primary market history.Bajaj Housing is the 21st stock in the mainboard list since January 2023 that remained frozen in the upper circuit within two hours of listing and for the remaining part of the session, said Gaikar.

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