Shares of India’s Bajaj Housing Finance more than doubled in value on Monday during their stock market debut, underscoring the strong investor demand for the company.
The stock, listed on the National Stock Exchange, surged to ₹161 per share, a 130% jump from the IPO price of ₹70, reflecting the robust interest in India’s growing real estate sector.
The initial public offering (IPO) of Bajaj Housing Finance, which took place last week, was oversubscribed nearly 64 times, with total bids reaching a value of $39 billion. The company raised $781 million in the IPO, giving it an initial valuation of $7 billion. Following its stellar debut, Bajaj Housing Finance’s market capitalization climbed to approximately ₹1,331.59 billion ($15.6 billion).
As a key player in India’s mortgage lending space, Bajaj Housing Finance primarily caters to high-end homebuyers and corporate clients, providing loans for home purchases, renovations, and commercial property. It also offers loans against property for both business and personal use. The company, headquartered in Pune, is a unit of Bajaj Finance, part of the larger Bajaj Group, which operates in various sectors such as automobiles and consumer goods.
The successful listing highlights the strong momentum in India’s equity markets, driven by the country’s fast-growing economy. Both of India’s major benchmark indexes, the Nifty 50 and Sensex, have posted significant gains this year, continuing the upward trend seen in 2022.
Experts attribute the surge in IPOs and market activity to increased demand and investor confidence in sectors like real estate and finance. Bajaj Housing Finance’s impressive debut signals continued interest in India’s real estate sector, which has been expanding rapidly due to strong demand for housing and commercial spaces.
While the company’s stock saw a sharp rise on the first day, market analysts have advised cautious optimism, noting that the initial post-IPO surge is often driven by speculation. Investors may benefit from a long-term strategy that considers the company’s fundamentals as the stock price stabilizes in the months ahead.
With input from CNBC, Mint, and Financial Times.
