Bajaj Housing Finance shares more than doubled in price on their first day of trading, opening at a 114% premium over the IPO price. The strong debut reflects investor confidence in the company's growth prospects and the booming housing loan market in India.
In pre-open trade on Monday, Bajaj Housing Finance shares opened at more than double the offer price as investors placed bets on robust growth in the expanding house loan sector. The housing financing firm started trading at a whopping 114% premium on the stock markets. In stark contrast to the issue price of Rs 70, the company's shares opened for Rs 150 on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The shares had been trading at a Grey Market Premium (GMP) of 120% over the issue price prior to the listing.
With a total of Rs 6,560 crore raised, Bajaj Housing Finance's initial public offering (IPO) is now the biggest of the year. Investors responded overwhelmingly well to the public offering; subscriptions exceeded the company's entire share offering by about 67 times.
Leading Indian supplier of mortgage loans, Bajaj Housing Finance serves both large-scale developers and affluent individual homeowners. Due to the firm's parent company, Bajaj Group, providing substantial support, it has been able to create a nationwide distribution network. The operations of Bajaj Housing Finance as of June 30, 2024, include "215 branches across 174 locations in 20 states."
Bajaj Housing Finance entered the mortgage market just seven years ago, but in that time, it has grown to become India's largest non-deposit-taking Housing Finance Company (HFC) based on assets under management (AUM).
With the best credit rating, the organisation is the second-highest profit-making housing financing provider. With a net profit of 76% throughout FY20–24, it has a strong ROA/ROE of 2.4%/15.2% in FY24. Throughout FY22–24, the firm also expanded at a pace of 31% for housing loans, 53% for lease rental discounting, and 26% for developer financing loans. As of FY24, the firm has the lowest GNPA (0.27%) and NNPA (0.10%).