Bajaj Housing Finance Soars 10% Post IPO Debut, Analysts See Strong Long-Term Prospects

Bajaj Housing Finance’s share price surged by up to 10% on Tuesday, September 17, reaching the upper circuit at Rs 181.5, continuing the momentum after a successful IPO debut. It later settled at Rs 178, an 8% gain for the day.

On its listing day, the stock closed at Rs 165, a significant 135% increase from its IPO price of Rs 70. The stock received its first ‘buy’ rating from Phillip Capital, setting a target price of Rs 210, indicating a potential upside of 27%.

Phillip Capital noted strong growth prospects for Bajaj Housing Finance, particularly in the Rs 50 lakh home loan segment, which makes up 65% of India’s home loan market. The firm expects Bajaj Housing Finance’s balance sheet to exceed Rs 2 lakh crore in three years, supported by low credit costs in the near term.

The IPO, which raised Rs 6,560 crore, set a record with Rs 3 lakh crore in bids, making it the largest-ever subscription in India.

Investment analysts are advising shareholders to hold onto their investments for long-term gains due to the company’s strong fundamentals. For those who missed out on the IPO, cautious buying is recommended with a long-term view.

Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers, advises, "Investors looking to buy Bajaj Housing Finance stock post-listing should adopt a long-term perspective rather than seeking short-term gains."

The Bajaj Housing Finance IPO included a fresh issue of Rs 3,560 crore in equity shares and an offer-for-sale (OFS) worth Rs 3,000 crore by parent company Bajaj Finance. This move aligns with Reserve Bank of India’s regulations requiring non-banking finance companies (NBFCs) in the upper tier to be listed by September 2025.

With its impressive listing gains, Bajaj Housing Finance’s market capitalization soared to Rs 1.37 lakh crore, nearly 2.4 times the IPO allotment estimate of Rs 58,297 crore.

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