Tue Sep 17 03:59:55 UTC 2024: ## Bajaj Housing Finance Soars After Bumper IPO, Analysts Predict Further Growth

**Mumbai, India:** Bajaj Housing Finance, India’s largest housing finance company, has seen a stellar debut on the stock market, with its share price surging 10% at open on Tuesday, hitting the upper circuit at Rs 181.5. This follows a remarkable listing day on Monday where the stock more than doubled IPO investors’ money.

PhillipCapital, the first brokerage to initiate coverage on the newly listed NBFC, has issued a ‘buy’ rating on Bajaj Housing Finance, setting a target price of Rs 210 per share, which represents a 27% potential upside. This bullish outlook is driven by the company’s strong focus on the ‘desirable’ Rs 5 million (50 lakh) home loan segment, accounting for 65% of home loan originations in India.

Analysts anticipate continued growth for Bajaj Housing Finance, attributing it to the company’s robust fundamentals, strong performance in the housing finance sector, and an expected balance sheet exceeding Rs 2 lakh crore within the next three years.

The Bajaj Housing Finance IPO, the largest-ever subscription amount for an IPO in India, attracted bids exceeding Rs 3 lakh crore for the Rs 6,560 crore issue. Following the listing day gain, the company’s market capitalisation reached Rs 1.37 lakh crore, nearly 2.4 times its estimated value at the IPO allotment price.

Investors who were allotted shares are advised to hold on to them for long-term benefits. Those who missed the IPO may consider cautious buying for long-term growth, based on their individual risk tolerance. However, analysts emphasize the need for a long-term perspective on the stock and discourage short-term speculation.

The IPO comprised a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of equity shares valued at Rs 3,000 crore by parent company Bajaj Finance, fulfilling the Reserve Bank of India’s requirement for upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.

Read More