Tue Sep 17 12:53:39 UTC 2024: ## Bajaj Housing Finance Soars on Debut, Becomes India’s Largest Housing Finance Company
**Mumbai, India (Moneycontrol):** Bajaj Housing Finance, the housing finance arm of the Bajaj Group, made a stellar debut on the stock market, becoming India’s largest housing finance company by market capitalization. On its listing day, September 16th, the stock surged 114% to hit the upper circuit limit of 10%, closing the day at the same level.
The stock continued its impressive run on the second day, again hitting the upper circuit limit of 10%, taking the share price from its IPO price of ₹70 to ₹181.48, more than doubling the investment for IPO investors. This surge gave the company a market cap of ₹1.51 lakh crore.
Analysts are bullish on the stock’s future prospects. PhilipCapital, the first brokerage to give a “buy” rating to the company, forecasts the share price to reach ₹210, potentially tripling the IPO investment. The brokerage attributes this potential growth to Bajaj Housing Finance’s strong focus on the home loan segment, particularly loans with a ticket size of ₹50 lakh.
With a 65% market share in this segment, the company enjoys a dominant position in the home loan market. While the primary focus remains on home loans, the company’s loan book is expected to maintain an 8-10% share of construction finance. PhilipCapital expects Bajaj Housing Finance’s balance sheet to cross ₹2 lakh crore within the next three years.
Narendra Solanki, Head of Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers, advises investors to adopt a long-term perspective rather than a short-term one for Bajaj Housing Finance.
The successful listing of Bajaj Housing Finance comes after the company raised ₹6560 crore through its IPO, of which ₹3560 crore came from fresh issuance of shares and ₹3000 crore from an offer for sale by its parent company, Bajaj Finance. The IPO was mandated by the Reserve Bank of India’s (RBI) regulation that requires upper-layer NBFCs to list within three years of their operations. The deadline for Bajaj Housing Finance was September 2025.
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