Shares of Bajaj Housing Finance tumbled 6% in intraday trade on Thursday, December 12 to a two-week low of ₹132.80 apiece. This decline comes as the three-month shareholder lock-in period ended today, releasing 12.5 crore shares, or 2% of the outstanding equity of Bajaj Housing Finance, which is now available for sale in the secondary market.

The lock-in period, which applied to pre-IPO investors, has now expired, enabling these investors to sell their stakes through stock exchanges. The company’s shares made a bumper debut on the stock exchanges on September 16, listing at ₹150, a 114.3% premium over the IPO price of ₹70 apiece.

The IPO received a stellar response from investors, with bids exceeding ₹3 lakh crore against an issue size of ₹6,560 crore. Post-listing, the shares continued their winning streak, hitting a record high of ₹188 apiece.

However, the rally couldn’t be sustained amid broader market volatility, and the stock tumbled below its listing price, reaching ₹125 in November. Since then, the stock has seen some recovery, gaining 8% from its November low levels.

Bajaj Housing Finance is part of the esteemed Bajaj Group, a leading Indian conglomerate with a diverse portfolio. The group includes prominent listed entities such as Bajaj Finance, a top non-banking financial company, and Bajaj Auto, a key player in the automotive sector.

Established in 2008 and a registered non-deposit-taking housing finance company with the National Housing Bank (NHB) since 2015, Bajaj Housing Finance began offering mortgage loans in FY18. It is wholly owned by Bajaj Finance, of which 51.34 per cent is held by Bajaj Finserv. Both are classified as promoters of Bajaj Housing Finance.

AUM crossed ₹one lakh crore in Q2

The company achieved a significant milestone in Q2 FY25, with its Assets Under Management (AUM) crossing ₹1 lakh crore mark, reaching ₹1.02 lakh crore compared to ₹81,125 crore in the same period last year.

Disbursements during the quarter stood at ₹12,014 crore, consistent with ₹12,154 crore in Q2 FY24, which was driven by a few marquee transactions in the commercial business. As of September 30, 2024, the company maintained a liquidity buffer of ₹3,220 crore, with a liquidity coverage ratio of 220.9%, significantly higher than the regulatory requirement of 85%, as per the company’s Q2 earnings filing. 

Operational efficiency improved, with Opex to NTI reducing to 20.5% in Q2 FY25 from 22.1% in Q2 FY24, and for H1 FY25, it stood at 20.7%, compared to 23.0% in H2 FY24. The company also reported a profit after tax (PAT) of ₹546 crore for the quarter, a notable increase from ₹451 crore in Q2 FY24.

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