Mon Sep 16 14:00:50 UTC 2024: ## Bajaj Housing Finance Debuts on Stock Market with 114% Premium, Investors Cautious

**Mumbai, India** – Bajaj Housing Finance, a subsidiary of Bajaj Finance, made its much-anticipated debut on the stock market today, opening at Rs 150, a whopping 114% premium over its IPO price of Rs 70. The stock further climbed to its upper circuit limit of Rs 164.99, bringing its market capitalisation to over Rs 1.37 lakh crore.

The company’s Rs 6,560 crore IPO was a resounding success, receiving 64 times subscription from institutional buyers, with bids exceeding 4,627 crore shares against 72.75 crore on offer.

While experts acknowledge the strong fundamentals and healthy growth prospects of Bajaj Housing Finance, they advise investors to adopt a cautious approach.

Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers, emphasizes the importance of a long-term perspective, suggesting investors should not expect short-term gains.

However, Rajesh Agarwal, Head of Research at AUM Capital, believes LIC Housing presents a better investment opportunity based on valuation.

Bajaj Housing Finance’s IPO consisted of a fresh equity issue worth Rs 3,560 crore and an offer-for-sale (OFS) of shares amounting to Rs 3,000 crore by the parent company. This IPO was part of a broader move to comply with the Reserve Bank of India’s (RBI) regulations, which mandate that upper-layer non-banking finance companies be listed by September 2025.

The company provides a range of mortgage products, including home loans, loans against property, lease rental discounting, and developer financing. It is classified as an “upper layer” NBFC by the RBI, indicating its significant role within the financial sector.

**Disclaimer:** This article is for informational purposes only and does not constitute financial advice. Investors should consult with certified professionals before making any investment decisions.

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