Bajaj Finance shares gain 4% as board greenlights Bajaj Housing Finance IPO

Bajaj Finance saw a 1% rise in its shares, reaching Rs 6,990 per share on June 7, following the board’s approval of an initial public offering (IPO) plan for Bajaj Housing Finance. The IPO is set to raise around Rs 4,000 crore through a combination of fresh issue and offer-for-sale components.

Despite a 5% decline in stock value so far this year, Bajaj Finance remains optimistic amidst the market’s fluctuations. The NBFC major’s stock performance has underperformed against the 4% rise in the benchmark Nifty 50 index. Notably, Bajaj Finance hit a 52-week high of Rs 8,190 per share on October 6, 2023, and a low of Rs 6,190 per share on March 6, 2024.

Advertisement

The public issue of Bajaj Housing Finance will involve the sale of shares by existing shareholders, according to an exchange filing by Bajaj Finance. The board’s approval of the IPO is contingent upon market conditions, approvals, and regulatory clearances.

In the January-March quarter (Q4FY24), Bajaj Finance reported a 21.1% year-on-year increase in net profit, amounting to Rs 3,824 crore. Similarly, the net interest income (NII) rose by 21.1%, reaching Rs 3,824.53 crore, reflecting the company’s steady growth trajectory.

Analysts at InCred Equities maintain an ‘add’ rating on Bajaj Finance, projecting a target price of Rs 9,000 per share, signifying a potential upside of 30% from current levels. They laud the company’s aggressive customer acquisition strategy and successful diversification into new business segments.

As of 11:55 am, shares of Bajaj Finance were trading 3.96% higher at ₹7,200.00 on NSE.