Bajaj Housing Finance shares have witnessed a significant recovery today, with the stock hitting the upper circuit on the Bombay Stock Exchange (BSE) at ₹149.70. While this marks a strong bounce for the company’s shares, they are still trading below the initial listing price of ₹150. Let’s take a closer look at the stock’s performance and the broader picture for investors.
Stock Performance
On Tuesday, Bajaj Housing Finance’s shares opened at ₹135.25 on the BSE. Shortly after, the stock surged, reaching the upper circuit level of ₹149.70. This sharp recovery is a welcome development for investors, though it’s important to note that the current price remains slightly below the listing price of ₹150.
Despite the upward trend today, the stock is still yet to return to its highs, leaving investors hopeful for more consistent gains in the future.
IPO Overview and Investor Response
Bajaj Housing Finance’s IPO, which opened on September 9, 2024, created quite a buzz in the market. Retail investors had until September 11, 2024, to participate, and the IPO was oversubscribed by more than 77 times. On the last day alone, the IPO saw a subscription rate of over 67 times, reflecting significant interest and confidence in the company.
The IPO price band was set between ₹66 and ₹70, and the overall size of the IPO was ₹6,560 crore. Such an overwhelming subscription is a testament to the market’s belief in Bajaj Housing Finance’s potential for growth.
Market Cap and Historical Share Prices
As of today, Bajaj Housing Finance boasts a market cap of ₹1,24,672.36 crore. The stock has seen both highs and lows, with its 52-week high being ₹188.45 and its 52-week low at ₹129.85. The current price, while below its peak, shows a positive recovery trend that may offer investors some optimism about its future performance.
Fresh Share Issuance and Anchor Investor Insights
Through the IPO, Bajaj Housing Finance issued 50.86 crore fresh shares, adding a substantial amount to the company’s capital. Additionally, under the Offer for Sale (OFS), the company raised ₹42.86 crore. Another key highlight is the involvement of anchor investors, who contributed ₹1,758 crore before the IPO was opened to the public. The lock-in period for 50% of the shares allotted to anchor investors is a mere 30 days, providing these key investors with early flexibility.
Conclusion
The sharp recovery of Bajaj Housing Finance’s shares today is a sign of positive momentum, but it remains to be seen how the stock will perform in the coming weeks. Investors who participated in the IPO at its peak or bought shares on listing day will be eagerly awaiting a return to the listing price or higher. However, with a strong market cap and substantial anchor investor involvement, the outlook remains optimistic for Bajaj Housing Finance’s stock performance in the near future.
Disclaimer:
This blog is for informational purposes only and should not be considered financial advice. Readers are encouraged to do their own research or consult with a financial advisor before making any investment decisions.