Bajaj Housing Finance shares make strong market debut, IPO listed with 114% premium at Rs 150

This opening price represents a 114 percent premium over the IPO issue price of Rs 70 per share, which was allocated to successful bidders on Sept. 13.

The listing gains of Rs 80 per share slightly exceeded the grey market premium, with the stock trading at a grey market premium (GMP) of Rs 75 on the morning of Sept. 16, according to several platforms tracking grey market activity.

Following this strong debut, Bajaj Housing Finance saw its market capitalization soar past Rs 1.07 lakh crore, with the share price reaching a peak of Rs 160.92 during the day.

This valuation is more than double the estimated Rs 58,297 crore based on the IPO allotment price.

The company’s Rs 6,560-crore initial public offering (IPO) attracted significant interest last week, with total subscriptions reaching Rs 3.23 lakh crore.

Analysts are optimistic about the company’s prospects, citing strong fundamentals and a positive outlook for the housing finance sector, suggesting that the stock may offer higher returns over time.

Investors who received shares are advised to hold them to potentially benefit from the company's future growth.

The IPO was undertaken to align with Reserve Bank of India (RBI) regulations, which mandate that upper-layer non-banking finance companies list on stock exchanges by September next year (2025).

The proceeds from the fresh issue will be used to bolster the company’s capital base to support future growth.

Meanwhile, following the impressive debut of Bajaj Housing Finance, which marked the largest IPO of 2024 and was subscribed nearly 67 times the shares offered, shares of Bajaj twins — Bajaj Finance and Bajaj Finserv — experienced declines on the BSE.

Bajaj Finance shares fell by 3.3 percent, reaching a day's low of Rs 7,347.10, while Bajaj Finserv shares dropped by 3 percent, hitting a low of Rs 1,855.30.