Bajaj Housing Finance shares rise 10% at 135% premium

16 Sep 2024 , 04:33 PM

Bajaj Housing Finance shares closed on the NSE ₹165, representing a 135% premium over the issue price of ₹70. The stock closed 10% higher on Monday.

Bajaj Housing Finance Ltd.’s shares more than doubled in their trading debut following India’s largest new listing of the year, indicating a spike in local excitement for initial public offerings, which continues to stir concerns about a flood of liquidity driving up valuations.

Shares of India’s largest shadow lender’s home-loan unit rose as much as 136% to 165 rupees against an offer price of 70 rupees, setting a record for first-day gains in IPOs raising more than $500 million. Last week, the company’s IPO of 65.6 billion rupees ($781 million) garnered offers totalling more than $39 billion.

This year, investors have been enticed to first-day gains of more than 30% on average in India, making it a bright area for global capital raising. A survey published this month by the market regulator found that most ordinary investors sell half of their shares in IPOs within a week, highlighting the rush that has officials concerned.

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