Mon Sep 16 12:57:41 UTC 2024: ## Bajaj Housing Finance Soars on Stellar Debut, Analysts Suggest Profit Booking

**MUMBAI, INDIA -** Shares of Bajaj Housing Finance made a spectacular Dalal Street debut on Monday, surging 136% above its issue price, prompting analysts to advise investors to book profits. The stock opened at Rs 150 per share, a 114.29% premium over the IPO price of Rs 70. It then climbed further, hitting the upper circuit at Rs 165, pushing the company’s market capitalization to over Rs 1.35 lakh crore.

The remarkable listing performance was widely expected, given the IPO’s overwhelming subscription of 67.43 times and high grey market premium. Investors are confident in Bajaj Housing Finance’s strong financials, backed by the renowned Bajaj Group, according to Shivani Nyati, Head of Wealth at Swastika Investmart.

Despite the positive outlook, analysts recommend a profit-booking strategy, particularly for investors who secured allotments in the IPO. While long-term investors can hold their positions, setting a stop loss at Rs 135 is advised for risk management.

Bajaj Housing Finance is the second-largest HFC in India, boasting a diversified portfolio and strategic presence. Its customer-centric approach, driven by digitization and technology, has contributed to its impressive growth, notes Mahesh M Ojha, AVP Research at Hensex Securities.

“We believe the company is a good portfolio pick,” Ojha says. “We suggest investors book at least 50 per cent profits on the listing day itself, and hold the rest for long-term investment.” Fresh investors are encouraged to consider buying at levels between Rs 135 and Rs 140.

Prashanth Tapse, Senior VP (Research) at Mehta Equities, echoes the sentiment, advising conservative investors to book profits due to the significant listing gains. He also suggests long-term investors can maintain their holdings given the optimistic outlook for the housing finance sector and Bajaj Housing Finance’s strong business model.

The company anticipates maintaining a growth rate of 30-35% year-on-year, significantly outpacing the industry’s average growth of 13-14%, according to Nipun Lodha, Director – Corporate Finance at PL Investment Banking. This indicates a promising future for Bajaj Housing Finance, fueled by its aggressive expansion strategy.

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