Bajaj Housing Finance Shares Drop 3% as Lock-In Period Ends

Bajaj Housing Finance shares fell over 3% in early trading on Monday as the one-month lock-in period for shareholders came to an end. The stock dropped as much as 3.14%, reaching ₹146.05 on the BSE.

Today, about 12.6 crore equity shares, representing 1.5% of Bajaj Housing Finance’s total stake, will be eligible for trading after the lock-in period expires, according to IIFL Securities. Additionally, a three-month lock-in period will end on December 12, 2024, allowing another 12.6 crore shares to be traded.

It’s important to note that just because the lock-in period ends doesn’t mean all eligible shares will be sold in the market; it only means they can be traded.

Bajaj Housing Finance IPO Overview

Bajaj Housing Finance had a strong stock market debut on September 16, where shares listed at ₹150 each, a 114.29% increase from the IPO price of ₹70 per share. The stock reached a high of ₹188.45 on September 18 but later fell to ₹129.85 by October 8.

The IPO raised ₹6,560 crore, opening for subscription from September 9 to September 11. It included a fresh issue of 50.86 crore shares worth ₹3,560 crore and an offer for sale of 42.86 crore shares valued at ₹3,000 crore, with a price band set between ₹66 and ₹70 per share.

Bajaj Housing Finance is a non-deposit-taking housing finance company, with home loans making up 57.8% of its assets under management (AUM) of ₹91,370 crore as of March 31, 2024. The company has shown strong growth, with a compound annual growth rate (CAGR) of 31% in AUM from FY22 to FY24, and it holds a significant share of over 20% in the prime housing segment.

Most brokerages had recommended subscribing to the Bajaj Housing Finance IPO due to its solid fundamentals.

As of 9:20 am, Bajaj Housing Finance shares were trading 3.02% lower at ₹146.25, giving the company a market capitalization of ₹1,21,715 crore.