Bajaj Housing Finance Shares In Focus As Lock-In Period Ends

Shares of Bajaj Housing Finance Ltd are in the news today, as the three-month shareholder lock-in period for anchor investors comes to an end. With this, 12.6 crore shares, or approximately 2% of the company’s total equity, are now available for trade. It is important to note that this only means these shares are freed up for trading and does not imply that investors will sell their holdings.

IPO Details

The ₹6,560 crore initial public offering (IPO) of Bajaj Housing Finance garnered attention, with bids worth ₹3.23 lakh crore against an issue size of 72.75 crore shares. The IPO comprised a fresh issue of ₹3,560 crore and an offer-for-sale (OFS) of ₹3,000 crore by Bajaj Finance. The issue was oversubscribed 63.60 times, driven by interest from institutional investors. The Qualified Institutional Buyer (QIB) category was subscribed 209.36 times, non-institutional investors 41.50 times, and retail investors 7.02 times.

Financial Performance 

In Q2 FY25, the company reported a 21% increase in net profit to ₹546 crore compared to ₹451 crore in the same quarter the previous year. Total income rose to ₹2,410 crore, supported by ₹2,227 crore in interest income. The company’s Assets Under Management (AUM) crossed ₹1 lakh crore, reaching ₹1.02 lakh crore during the quarter. Gross non-performing assets (NPA) stood at 0.29%, slightly higher than the 0.24% reported a year earlier.

Stock Performance Since Listing

The company made its market debut in September 2024, listing at ₹150 per share, a premium over its issue price of ₹70. Following the listing, the stock peaked at ₹188.45 on September 18. However, it has since cooled off, trading at ₹133.25 as of December 12, reflecting a decline of 30% from its post-listing high. Despite this correction, the stock remains over 100% higher than its IPO price and was trading at ₹133.10, down over 5% today at 11:00 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.