Bajaj Housing Finance turns multibagger on listing: Book profits or hold?

Bajaj Housing Finance shares made a stellar debut at Rs 150 on the stock exchanges, more than doubling investors’ wealth in one go.
The impressive listing marked a premium of 114% over the IPO price of Rs 70, closely matching what market analysts had predicted, further underlining the strong demand for the stock.
This bumper listing was not entirely unexpected, given the IPO’s massive subscription rate and the high grey market premium leading up to the debut.
The listing success reflects investors’ confidence in the company’s solid financials and its association with the reputable Bajaj Group.
With this blockbuster entry on Dalal Street, the key dilemma for investors is now whether to book profits immediately or hold onto their positions for long-term gains.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, commented on the stock’s strong performance: “Bajaj Housing Finance, the housing finance arm of the renowned Bajaj Group, made a spectacular stock market debut, listing at Rs. 150 per share, a staggering 114% premium over its issue price of Rs. 70.”
Nyati explained that this performance was “widely anticipated, given the IPO’s overwhelming subscription of 67.43 times and the sky-high grey market premium.”
According to her, the listing reflects investors’ strong confidence in the company’s financial health, supported by the reputation of the Bajaj Group. She added that “Bajaj Housing Finance’s consistent growth, coupled with its reasonable valuation, made it a highly attractive investment proposition.”
For those who secured IPO allotments, Nyati advised considering booking profits now. However, for investors planning to hold, she recommended “potentially setting a stop loss at Rs 135” as a precaution.
She further noted the importance of “continuously monitoring the company’s performance and market conditions for informed decision-making.”
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)