Tue Sep 17 04:29:56 UTC 2024: ## Bajaj Housing Finance Soars After Bumper IPO, Analysts See Further Upside
**Mumbai, India -** Bajaj Housing Finance, the newly listed housing finance company, has made a stellar debut on the stock market, surging 10% at open on Tuesday and hitting the upper circuit at Rs 181.5. This strong performance follows its record-breaking initial public offering (IPO), which saw more than double the investment for IPO subscribers.
PhillipCapital, the first brokerage to initiate coverage on the company, has issued a “buy” rating, predicting further upside for Bajaj Housing Finance. They set a target price of Rs 210 per share, indicating a potential 27% increase from its closing price on listing day.
The brokerage highlights the company’s strong position in the Indian housing finance market, focusing on the desirable Rs 5 million (50 lakh) home loan ticket size range, a segment where it commands 65% of originations.
Analysts believe the company’s strong fundamentals and positive outlook for the housing finance sector will drive future growth. Investors who were allotted shares are advised to hold for long-term gains, while those who missed the IPO can consider cautious buying based on their risk tolerance.
Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers, emphasizes the importance of a long-term perspective for investors choosing to buy on listing day.
Bajaj Housing Finance’s IPO, which raised a record Rs 6,560 crore, saw subscriptions exceeding Rs 3 lakh crore, making it the largest IPO ever in India. The company’s market capitalization has already reached Rs 1.37 lakh crore, nearly 2.4 times its IPO allotment price.
First Piper 