Bajaj Housing Finance makes bumper debut as shares list at 114% premium

Bajaj Housing Finance made a bumper stock market debut on Monday, September 16, with shares listing at Rs 150 on both the National Stock Exchange and Bombay Stock Exchange, marking a 114% premium over its IPO issue price of Rs 70.
The stellar performance was in line with what analysts had predicted ahead of today’s listing, considering the overwhelming subscription rate of 67.43 times and the high grey market premium leading up to the listing.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, attributed the blockbuster debut to investors’ strong confidence in the company’s solid financials, backed by the credibility of the Bajaj Group.
“Bajaj Housing Finance’s consistent growth and reasonable valuation made it a highly attractive investment proposition,” Nyati commented.
The listing gains of Rs 80 per share slightly exceeded the grey market premium, which stood at Rs 75 on the morning of the debut, according to platforms tracking grey market activity.
Nyati also suggested that investors who secured allotments in the IPO may consider booking profits now, but those willing to hold could set a stop loss at Rs 135 as a risk management strategy.
However, she highlighted the importance of closely monitoring the company’s performance and broader market conditions for informed decision-making.
“This successful debut is a testament to the company’s strong fundamentals and the market’s anticipation for its growth potential. Investors who were fortunate enough to secure allotments in the IPO may consider booking profit now, but those who want to hold their positions may do so by potentially setting a stop loss at Rs 135 as a risk management strategy,” she said.
“However, it’s essential to continuously monitor the company’s performance and market conditions for informed decision-making.”