Tue Sep 17 06:00:06 UTC 2024: ## Bajaj Housing Finance Soars on Listing Day, Analysts Recommend Long-Term Hold

**Mumbai, India:** Shares of Bajaj Housing Finance, India’s newest housing finance company, surged on their debut on the stock market Tuesday, gaining as much as 10% before settling at an 8% increase. This strong performance follows a record-breaking IPO that garnered over ₹3 lakh crore in bids.

The stock closed at ₹178, exceeding its initial public offering (IPO) price of ₹70 by over 150%. Phillip Capital has already issued a “buy” rating on the stock, setting a target price of ₹210, suggesting a potential 27% upside. The brokerage highlights Bajaj Housing’s focus on the lucrative ₹50 lakh home loan segment, which comprises 65% of India’s home loan market.

Analysts recommend a long-term holding strategy for investors who acquired the stock during the IPO, citing the company’s strong fundamentals. For those who missed the IPO, cautious buying with a long-term perspective is advised.

“Investors choosing to add the stock on listing day should have a long-term perspective on Bajaj Housing Finance stock and should not look for short-term opportunities,” said Narendra Solanki, Head of Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers.

The IPO, which raised ₹6,560 crore, consisted of a fresh issue of equity shares amounting to ₹3,560 crore and an offer-for-sale (OFS) of equity shares worth ₹3,000 crore by parent company Bajaj Finance. The listing follows Reserve Bank of India (RBI) regulations that require upper-layer non-banking finance companies to be listed by September 2025.

Bajaj Housing Finance’s market capitalization reached ₹1.37 lakh crore, nearly 2.4 times the estimated ₹58,297 crore at the IPO allotment price.

**Disclaimer:** Investment advice should be sought from certified professionals.

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