Tue Sep 17 10:00:09 UTC 2024: ## Bajaj Housing Finance Shares Surge After Stellar IPO Debut
**Mumbai, India:** Bajaj Housing Finance shares soared on Tuesday, gaining as much as 10% to hit an upper circuit of Rs 181.5 before settling slightly at Rs 178, still up 8%. This surge comes on the heels of the company’s impressive IPO debut, where shares closed at Rs 165, marking a 135% jump from the issue price of Rs 70.
The bullish momentum in Bajaj Housing Finance is further fueled by Phillip Capital’s positive outlook. The brokerage has become the first to issue a ‘buy’ rating for the stock, setting a target price of Rs 210, which represents a potential 27% upside from current levels.
Phillip Capital cites the company’s strategic focus on the Rs 50 lakh home loan segment, a substantial 65% of India’s home loan market, as a key driver for its optimistic forecast. The brokerage anticipates Bajaj Housing Finance’s balance sheet to exceed Rs 2 lakh crore within three years, driven by robust demand in the housing finance sector.
Additionally, low credit costs are expected to contribute to the company’s growth trajectory in the near term. Analysts are advising investors to hold onto the stock for long-term gains, while those who missed the IPO are encouraged to make cautious purchases with a long-term perspective.
“Investors adding the stock post-listing should have a long-term view and avoid focusing on short-term gains,” emphasized Narendra Solanki, Head of Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers.
Bajaj Housing Finance’s IPO raised a massive Rs 6,560 crore, attracting bids worth Rs 3 lakh crore, a record for the Indian market. The IPO comprised a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore from its parent company, Bajaj Finance. The listing was undertaken to comply with Reserve Bank of India (RBI) regulations mandating that upper-layer non-banking financial companies (NBFCs) be listed on stock exchanges by September 2025.
Following the listing day rally, Bajaj Housing Finance’s market capitalization reached Rs 1.37 lakh crore, nearly 2.4 times its estimated valuation of Rs 58,297 crore at the IPO allotment price.
The company’s strong fundamentals, coupled with the positive outlook from brokerages, have positioned Bajaj Housing Finance as a promising investment option for both long-term holders and new market entrants. Investors are eagerly watching to see if the stock will continue its upward trajectory, with the Rs 210 target set by Phillip Capital providing a potential near-term goal.
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