Bajaj Housing Finance IPO Buzz: Why Buying Bajaj Finance and Bajaj Finserv Shares Now Could Be a Smart Move as RHP Date Nears

The initial public offering (IPO) of Bajaj Housing Finance Limited is expected to be launched in September 2024. The company is set to release its Red Herring Prospectus (RHP) next week, which will include details like the opening date and price band. Despite not yet having announced the price band, the IPO is already generating excitement in the grey market, with shares showing a premium of ₹42.

Why Invest in Bajaj Finance and Bajaj Finserv Now?

Stock market experts suggest that investors should consider purchasing shares of Bajaj Finance and Bajaj Finserv before the end of this week. According to the Draft Red Herring Prospectus (DRHP), shareholders of these parent companies as of the RHP filing date will be eligible to apply for the Bajaj Housing Finance IPO under a special shareholder category.

The DRHP clarifies that individuals and Hindu Undivided Families (HUFs) who own shares in Bajaj Finance or Bajaj Finserv before the RHP is filed will be eligible to apply for the IPO in this category. This could increase their chances of receiving shares in the IPO.

Expert Opinions

Avinash Gorakshkar, Head of Research at Profitmart Securities, mentioned that the IPO is likely to launch in September 2024, with the RHP expected to be filed next week. He advises those interested in applying under the shareholder category to buy shares in Bajaj Finance or Bajaj Finserv by the end of this week.

Investment Outlook

Sumeet Bagadia, Executive Director at Choice Broking, recommends buying and holding Bajaj Finance shares for a near-term target of ₹7,400, with a stop loss at ₹6,850. Similarly, he suggests buying Bajaj Finserv shares with short-term targets of ₹1,900 and ₹2,000, with a stop loss at ₹1,700.

By investing in Bajaj Finance or Bajaj Finserv now, investors not only stand to gain from potential growth in these stocks but also increase their chances of getting shares in the Bajaj Housing Finance IPO through the allotment process.