Bajaj Housing Finance gains 8%, still below IPO.
The share price of Bajaj Housing Finance increased by more than 8 percent in early trade on October 8, after a drop of more than 9 percent on Monday. However, Bajaj Housing Finance shares are still trading below their IPO listing price. The stock touched an intraday high of Rs 149 on the NSE, rising by more than 8 percent in today’s trading session. On October 7, the stock fell by 9.67 percent to settle at Rs 136.03. The current share price of the company is still below its listing price from the last month. The company’s shares debuted on the exchanges at Rs 150 on both BSE and NSE against an issue price of Rs 70. The price of the IPO was set at Rs 66-70 per share. The offer included a fresh issue of equity shares worth Rs 3,560 crore and an offer for sale of equity shares worth Rs 3,000 crore. It has been brought to market by the parent company, Bajaj Finance. Bajaj Housing Finance, a non deposit taking housing finance company, has been registered with the National Housing Bank since September 2015. The company provides financial solutions for purchasing and renovating both residential and commercial properties. It is categorised as an upper layer non banking financial company. Approved by the Reserve Bank of India (RBI), its mortgage offerings include home loans, loans against property, lease rental discounting, and developer financing. The Rs 6,560 crore-initial public offering (IPO) of Bajaj Housing Finance Ltd was subscribed 63.60 times on the final day of bidding. The recovery in Bajaj Housing Finance share price is positive sign yet the stocks trading below its IPO price indicates ongoing market uncertainty.
