Bajaj Housing shares hit 10% upper circuit a day after bumper listing

Bajaj Housing Finance shares were listed at Rs 150 on the BSE, and NSE, surging 114.28 per cent above the IPO issue price of Rs 70

Newly listed Bajaj Housing Finance shares soared 10 per cent in the morning deals hit the upper circuit at Rs 181.48 per share. The stock made a strong debut on the bourses on Monday, September 16, doubling investors' money on the issue price.

At around 9:48 AM, shares of Bajaj Housing Finance were up 8.13 per cent at Rs 178.4 per share. BSE Sensex at around the same time traded 7.46 points lower at 82,981.32.

On Monday, Bajaj Housing Finance shares were listed at Rs 150 on the BSE, and the National Stock Exchange (NSE), surging 114.28 per cent above the IPO issue price of Rs 70.

By close, the share commanded a market price of Rs 165 per share, a staggering 137 per cent surge over its issue price. Its market-cap stood at Rs 1.37 trillion.

Also Read: Bajaj Housing Finance gets first 'Buy' call; PhillipCapital sees 27% upside

Brokerage PhilipCapital initiated coverage on Bajaj Housing Finance with a 'Buy' rating. The brokerage sees an upside potential of 27 per cent from Monday's closing and gave a target of Rs 210 per share.

Analysts at PhillipCapital believe that Bajaj Housing Finance has a higher return ratio than its peers as it sources around 40 per cent of its home loans from its parent company, Bajaj Finance's customers. Additionally, Bajaj Housing gives around 90 per cent of its home loans to salaried customers which reduces costs leading to a lower expense ratio in the medium term and augments its risk-adjusted spreads. READ MORE

Bajaj Housing Finance is a subsidiary of Bajaj Finance — one of the most diversified NBFCs in the Indian market. Headquartered in Pune, Bajaj Housing Finance offers finance to individuals as well as corporate entities for the purchase and renovation of homes or commercial spaces. It also provides loans against property for business or personal needs, as well as working capital for business expansion purposes.

Bajaj Housing Finance also offers finance to developers engaged in the construction of residential and commercial properties, as well as lease rental discounting to developers and high-net-worth individuals.