Bajaj Housing Finance Ltd. experienced a decline in its share price on Monday as the one-month lock-in period for shareholders ended. This development allowed around 12.6 crore shares, accounting for approximately 1.51% of the company’s outstanding equity, to be traded. While the end of the lock-in period could lead to concerns about potential selling pressure, it does not necessarily imply that all investors will choose to sell their shares immediately.
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The company made its debut on the stock market on September 16, starting with an IPO price of Rs 70 per share. After a remarkable first trading day where the stock surged by 135%, it reached a peak of Rs 188. However, the stock has faced a decline since then, closing at Rs 150 per share on Friday, which is still the initial listing price. To date, the stock has risen 115% from its issue price.
Earlier this month, Bajaj Housing Finance reported robust growth in its Q2 business update. Its assets under management (AUM) rose by 26% year-on-year, exceeding the Rs 1 lakh crore mark for the first time, totaling Rs 1.02 lakh crore as of September 30, 2024. This performance indicates a positive growth trajectory, despite investor concerns regarding trading eligibility.
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Looking ahead, a three-month lock-in period will conclude on December 12, allowing an additional 12.6 crore shares to become available for trading.
As of today, Bajaj Housing Finance’s share price fell by as much as 4.56% to Rs 144.0 per share, later adjusting to a 4.24% decrease at Rs 144.49 per share by 9:45 a.m., while the NSE Nifty 50 saw a 0.60% increase. The stock has decreased by 12.43% over the last month, with total traded volume at 0.4 times its 30-day average. The relative strength index was reported at 40.
