Bajaj Housing Finance Shares Fall Over 4% as One-Month IPO Lock-In Period Ends

Bajaj Housing Finance Shares Fall Over 4% as One-Month IPO Lock-In Period Ends

Bajaj Housing Finance’s share price fell by more than 4% in early trading on Monday, October 14, as the one-month lock-in period for shareholders came to an end. The stock dropped as much as 4.50% to ₹144 per share on the BSE, signaling increased activity as a portion of locked shares became eligible for trading.

As per IIFL Securities, around 12.6 crore equity shares, representing a 1.5% stake in Bajaj Housing Finance, are now available for trading as the lock-in period expires. Additionally, a three-month lock-in period will conclude on December 12, 2024, when another 12.6 crore shares will become eligible for trading.

It is important to note that the end of the lock-in period does not necessarily mean all the shares will be sold. It merely indicates that these shares can now be traded in the stock market.

Bajaj Housing Finance IPO Performance

Bajaj Housing Finance had a strong stock market debut on September 16, 2024. The stock doubled its investors’ returns on its first day, listing at ₹150 per share, a premium of 114.29% compared to the issue price of ₹70. The stock continued its rally, reaching a high of ₹188.45 on September 18. However, it later saw a decline, with the price dropping to ₹129.85 on October 8.

Bajaj Housing Finance, a non-deposit-taking housing finance company, focuses heavily on home loans, which accounted for 57.8% of its Assets Under Management (AUM) of ₹91,370 crore as of March 31, 2024. The company has shown a strong AUM CAGR of 31% from FY22 to FY24 and holds the largest share of the prime housing market, exceeding 20%.

Brokerage firms had previously recommended subscribing to the Bajaj Housing Finance IPO due to the company’s strong financial fundamentals.

As of 10:03 AM on Monday, Bajaj Housing Finance shares were trading at ₹144.75, down 4.01%, with a market capitalization exceeding ₹1.20 lakh crore.

The ₹6,560 crore IPO for Bajaj Housing Finance ran from September 9 to September 11, 2024. The offering was a combination of a fresh issue of 50.86 crore shares, raising ₹3,560 crore, and an offer for sale of 42.86 crore shares valued at ₹3,000 crore. The price band for the IPO was set at ₹66 to ₹70 per share.