The shares of Bajaj housing Finance hit a 10 per cent upper circuit after HSBC said in a report that Bajaj Housing Finance is a 'high quality frachise', with 'diversified assets under management.'
The stock opened at Rs 135.40 per share on the National Stock Exchange, the high momentum in the stock resulted in a 10 per cent jump in the share price of Bajaj Housing Finance.
The stock stopped trading at Rs 149.63 per share on the NSE (National Stock Exchange).
HSBC described Bajaj Housing Finance, a division of Bajaj Finance, as a "high-quality franchise" in its report, citing its well-managed liquidity, diverse assets under management (AUM) mix, and return on assets (ROA).
It stated that Bajaj Housing Finance's current valuation, which is 44 times the price-to-earnings (PTE) and 5.5 times the price-to-book (PTB) for the fiscal year 2026, indicates a steep growth expectation for both AUM and earnings.
Company's growth
During the September quarter of 2025, the housing finance company's AUM exceeded Rs 1 lakh, indicating a 26 per cent annual growth.
However, HSBC pointed out that the RoA of the Bajaj Group company has peaked, and that pressure on its Net Interest Margins (NIMs), slower growth in its AUM, and normalised credit costs will cause EPS growth to slow.
Bajaj housing finance IPO
As part of the IPO, parent company Bajaj Finance is issuing a fresh issue of up to Rs 3,560 crore of equity shares in addition to an offer-for-sale (OFS) of up to Rs 3,000 crore in equity shares.
In contrast to the 72.75 crore shares that were being offered across the BSE and NSE, bids for more than 4,624 crore shares were received for Bajaj Housing Finance's Rs 6,560-crore public offering.
Bajaj Housing Finance declared that the company had received contributions of Rs 1,758 crore from anchor investors.
