Bajaj Housing Finance surges 2.4x on debut, adds Rs 79K cr in market value

BHF's strong debut follows strong demand for its shares during its Rs 6,560 crore IPO, which saw 67 times more demand than shares on offer and garnered record Rs 3.2 trillion worth of bids

Bajaj Housing Finance (BHF) made a robust trading debut on Monday, skyrocketing 2.4 times and adding Rs 79,000 crore to its market value.

This marks the best-ever listing performance of an initial public offering (IPO) of over Rs 3,000 crore, after Tata Technologies’ 2.6 times surge in November last year.

On the National Stock Exchange (NSE), BHF shares closed at Rs 165, a gain of Rs 95, or 135 per cent, over the issue price of Rs 70.

The stock hit a low of Rs 146 and a high of Rs 165 on the NSE, with nearly Rs 10,000 crore worth of shares changing hands.

The stock hit its 10 per cent upper circuit limit over its opening price of Rs 150 per share. At the closing price, BHF was valued at Rs 1.37 trillion, making it the country’s most valuable housing finance company (HFC).

The impressive debuts of Bajaj Housing Finance (BHF) and Tata Technologies underscore the domestic market's willingness to pay a premium for high-quality businesses, particularly those backed by reputable corporate groups, said experts.

BHF’s buoyant debut follows strong demand for its shares during its Rs 6,560-crore IPO. It saw 67 times more demand than shares on offer and garnered a record Rs 3.2 trillion worth of bids. 

The IPO also saw the highest-ever applications of almost 8 million (after technical rejections).

BHF’s IPO consisted of a fresh issue of Rs 3,560 crore and an offer for sale of Rs 3,000 crore by its parent company, Bajaj Finance.

Following the IPO, Bajaj Finance's stake in BHF has decreased from 100 per cent to 88.75 per cent, valuing its remaining holding at Rs 1.22 trillion.

Meanwhile, Bajaj Finance's shares declined 3.4 per cent to close at Rs 7,342, after a significant run-up in the lead-up to BHF's IPO.

Given that BHF’s shares hit their upper trading limit, it is likely that the stock might continue its upward march.

However, analysts are advising caution as the stock now trades at over six times its estimated book value for financial year 2025-26.

Other listed HFC peers trade in the range of 0.9x and 3.5x despite a similar or better return on asset profile.