Bajaj Housing Finance made a remarkable entrance into the stock market on Monday, September 16. The company’s shares were listed at Rs 150 on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), reflecting a substantial 114% premium over the IPO issue price of Rs 70. This strong debut aligns with analysts’ predictions, driven by the overwhelming subscription rate of 67.43 times and a high grey market premium leading up to the listing.
Analysts’ Insight on the Debut
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, attributed the blockbuster debut to the market’s confidence in Bajaj Housing Finance’s robust financials, bolstered by the reputable Bajaj Group. Nyati stated, “Bajaj Housing Finance’s consistent growth and reasonable valuation made it a highly attractive investment proposition.”
Listing Gains and Grey Market Premium
The listing gains of Rs 80 per share surpassed the grey market premium, which was noted at Rs 75 on the morning of the debut, according to grey market tracking platforms. This performance underscores the strong demand and positive sentiment surrounding the company’s entry into the stock market.
Investment Recommendations
Nyati advised investors to consider booking profits if they secured allotments in the IPO, while suggesting that those who choose to hold their positions might set a stop loss at Rs 135 to manage risk. She emphasized the importance of ongoing monitoring of both the company’s performance and broader market conditions for making well-informed decisions.
“This successful debut is a testament to the company’s strong fundamentals and the market’s anticipation for its growth potential,” Nyati remarked. “Investors who were fortunate enough to secure allotments in the IPO may consider booking profit now, but those who want to hold their positions may do so by potentially setting a stop loss at Rs 135 as a risk management strategy. However, it’s essential to continuously monitor the company’s performance and market conditions for informed decision-making.”