Bajaj Housing Finance Shares Surge 135% on Listing Day: Should Investors Cash In?
Bajaj Housing Finance has seen a remarkable debut on the stock market, with shares surging by 135% on their first day of trading. The stock, which was initially offered at ₹70 per share, listed at ₹149, representing a 114% premium over the IPO price. By the close of trading, Bajaj Housing Finance shares had climbed to ₹165, marking a substantial gain.
This stellar performance places Bajaj Housing Finance among the top four IPOs of 2024, alongside BLS E-Services, Premier Energies, and Unicommerce e-Solutions. The rapid rise caught the attention of analysts, with PhillipCapital issuing a "buy" recommendation and setting a price target of ₹210—implying a potential 27% upside from the stock’s closing price on Monday.
In just two days, Bajaj Housing Finance shares have appreciated nearly 160% from their IPO price, prompting investors to consider whether to hold their positions or book profits. Dipan Mehta of Elixir Equities suggests that the stock's premium valuation is likely to persist. “As the largest standalone housing finance company now listed, Bajaj Housing Finance will attract significant investor interest, particularly those seeking exposure to this segment within the non-banking financial company (NBFC) sector,” Mehta noted.
Mehta also highlighted that housing finance companies (HFCs) generally maintain lower non-performing asset (NPA) levels and offer stability in credit costs due to their lending practices and secured loans. “Given its size and rapid growth, Bajaj Housing Finance is poised to continue attracting attention from investors,” he added.
Currently, Bajaj Housing Finance shares are trading at ₹179.8, reflecting a 9% increase from the previous close. As the stock continues to perform well, investors face a decision: capitalize on the early gains or hold out for further appreciation.
