Mon Sep 16 05:59:56 UTC 2024: ## Bajaj Housing Finance IPO Makes a Stellar Debut, Soaring 120% on Listing

**Mumbai, September 16, 2024:** Bajaj Housing Finance, the housing finance arm of the Bajaj Group, had a record-breaking IPO earlier this week, raising a whopping ₹6,560 crore with a subscription of over 67 times. The company’s shares listed at ₹150 on both the BSE and NSE, a remarkable 114.28% gain for IPO investors. The share price surged further, reaching the upper circuit limit of ₹154.33 on the BSE, translating to a staggering 120.47% profit for investors.

The company’s robust financial performance and expansion plans have contributed to the optimistic outlook for the stock. Narendra Solanki, head of equity research at Anand Rathi Shares & Stock Brokers, advises investors to hold the stock for the long term, citing Bajaj Housing Finance’s plan to solidify its position in the market by strengthening ties with existing customers, onboarding new clients, and expanding into new regions. He also believes the premium valuation is justified given the company’s rapid Asset Under Management (AUM) growth.

While many experts endorse the long-term growth potential, some suggest investors consider booking partial profits. Rajesh Agarwal, research head at AUM Capital, and VLA Ambala, co-founder and SEBI-registered research analyst at SMT, both advise investors to take out half their profits and hold the remaining for the long term. Prashant Tapse, senior vice-president (research) at Mehta Equity, advises conservative investors to book profits while long-term investors can hold on. Broking house SMIFS is also bullish on the company, highlighting its strong growth prospects and favorable Gross NPA and Net NPA performance compared to peers in FY24.

Bajaj Housing Finance’s IPO witnessed a strong response from investors across all categories, with Qualified Institutional Buyers (QIBs) showing the highest interest, subscribing to the reserved portion 222.05 times. The company raised ₹3,560 crore through fresh issuance of shares and an additional ₹3,000 crore through an offer for sale of shares by its parent company, Bajaj Finance. The proceeds from the fresh issue will be used to strengthen the company’s capital base.

Bajaj Housing Finance, founded in 2008, is a non-deposit-taking housing finance company registered with the National Housing Bank (NHB) since 2015. The company offers a range of products and services, including home loans, loan against property, rent concessions, and developer finance. With a strong financial track record and a robust growth strategy, Bajaj Housing Finance’s IPO has undoubtedly proved a winner for investors.

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