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Published: September 17, 2024
Updated: September 17, 2024

Bajaj Housing Finance Stock Corrects After Strong IPO Rally

Shares Remain Volatile After Two Upper Circuits

The share price of Bajaj Housing Finance experienced a significant dip of over 2% on September 18, following two consecutive sessions of hitting the upper circuit. The stock had surged by 10% during the previous two trading days, but early trading on Wednesday saw a correction, with the stock price falling by 5.68% to an intraday low of Rs 171.16 per share on the Bombay Stock Exchange (BSE).

However, the decline was short-lived as the stock soon recovered, climbing back to Rs 184.84 per share at 9:35 AM, marking a 1.85% gain from the day’s opening. This recovery underscored the continued investor interest in the stock, despite some early volatility.

Impressive Market Debut

Bajaj Housing Finance Ltd made a stellar debut in the Indian stock markets earlier this week. Listed at Rs 150 on both the BSE and NSE, the stock opened with a massive 114.28% premium against its issue price of Rs 70. By the close of its first trading day, the stock was up by nearly 136%, reflecting strong demand and investor confidence.

Subscription Overwhelms Expectations

The company’s Rs 6,560-crore initial public offering (IPO) was met with overwhelming enthusiasm, receiving a subscription rate of 63.60 times on the final day of bidding, September 11. Institutional buyers led the surge, contributing significantly to the success of the IPO. Following the listing, Bajaj Housing Finance's market capitalization has surged, reaching Rs 1,53,937.46 crore as of September 18.

Despite some volatility in early trading, Bajaj Housing Finance remains a stock to watch after its blockbuster IPO. With strong market demand and solid fundamentals, the company’s shares continue to attract attention, even as investors adjust to post-listing price fluctuations.