In a remarkable market debut, Bajaj Housing Finance’s shares more than doubled on Monday, September 16, 2024, surging 130% to 161 Rupees before paring some gains to trade at 125% higher. The stock was listed at 150 Rupees on the National Stock Exchange of India, compared with an offer price of 70 Rupees.
Market Capitalization
The market capitalization of Bajaj Housing Finance after its market debut on September 16 is approximately ₹1.34 trillion (or $16 billion USD). This is based on the company’s shares surging 125% on their first day of trading, closing at ₹165 on the NSE. The company’s market valuation stood at ₹1,30,751.90 crore.
After a blockbuster listing, Bajaj Housing Finance became the most valuable housing finance company with a market capitalisation (m-cap) of Rs. 1.37 lakh crore.
Market capitalization, or market cap, is the total value of all outstanding shares of a company’s stock. It is calculated by multiplying the total number of shares outstanding by the current market price of one share. Market capitalization is used to determine the size of a company, with larger companies having higher market capitalizations. It is also used to compare the size of different companies and to determine the market value of a company’s shares.
IPO Performance
Bajaj Housing Finance’s IPO performance has been stellar, with the company’s shares more than doubling on their market debut. The IPO was subscribed 64 times, breaking records with bids worth about $38.60 billion last week. The company’s shares listed at ₹150, a 114% premium over the issue price of ₹70.
Impact on Rivals
The strong market debut of Bajaj Housing Finance has brought the number two and three players – LIC Housing Finance and PNB Housing Finance – in focus. Shares of rivals LIC Housing and PNB Housing fell 3.5% and 5.9%, respectively, on Monday.
Indian IPO Market on Bajaj Housing Finance
The Indian Initial Public Offering (IPO) market has witnessed significant growth in recent years, with many companies opting to go public to raise capital and increase their visibility. Bajaj Housing Finance, a subsidiary of Bajaj Finance, is one of the recent IPOs that has made a successful debut in the Indian stock market.
Bajaj Housing Finance IPO:
- The Bajaj Housing Finance IPO was the largest IPO of 2024, with a total issue size of Rs 6,560 crore.
- The IPO was subscribed nearly 67 times, with bids worth Rs 3.2 lakh crore received from investors.
- The IPO was priced at Rs 70 per share, with a face value of Rs 10 per share.
Listing Performance:
- Bajaj Housing Finance shares made a bumper debut on the stock exchanges, listing at Rs 150 on the National Stock Exchange of India (NSE) and Rs 151 on the Bombay Stock Exchange (BSE).
- The shares surged 114% above the issue price, with the company’s market capitalization reaching Rs 1.15 lakh crore.
- The strong listing performance was driven by the company’s strong financials, its reputation as a leading housing finance company, and the growth prospects of the Indian housing finance industry.
Industry Outlook:
- The Indian housing finance industry is expected to grow at a compound annual growth rate (CAGR) of 15-20% over the next few years, driven by factors such as the government’s push for affordable housing, increasing demand for housing loans, and the growth of the Indian economy.
- Bajaj Housing Finance is well-positioned to capitalize on this growth, with its strong brand, extensive distribution network, and robust financials.
Valuation:
- Bajaj Housing Finance’s valuation is considered to be competitive compared to its peers, with a price-to-book (P/B) ratio of 2.5 times.
- The company’s strong financials, growth prospects, and reputation as a leading housing finance company justify its premium valuation.
Analysts’ Views:
- Analysts are bullish on Bajaj Housing Finance’s prospects, with many recommending a “buy” rating on the stock.
- They cite the company’s strong financials, growth prospects, and reputation as a leading housing finance company as key reasons for their positive view.
Conclusion
The Bajaj Housing Finance has seen a stellar market debut, with shares more than doubling on their first day of trading. This strong performance can be attributed to the company’s solid financials, its reputation as a leading housing finance provider, and the overall growth prospects of the Indian housing finance industry. The success of the IPO and the strong market debut have created an attractive investment opportunity for investors, and the company is well-positioned to capitalize on the expected growth of the industry. Overall, the Bajaj Housing Finance IPO has been a positive event in the Indian IPO market, highlighting the potential for companies and investors in the country’s growing economy.
