Bajaj Finance share price likely to rise by 5%

Business: Bajaj Housing Finance IPO: According to Macquarie analysts, the bumper listing of Bajaj Housing Finance shares could lead to a gain of up to 5% in the share price of its parent company Bajaj Finance. Bajaj Housing Finance IPO is scheduled to open for public subscription on September 9 and close on September 11. Bajaj Housing Finance IPO listing date is September 16 and grey market trends indicate a strong opening for the shares. Bajaj Housing Finance is a 100% subsidiary of Bajaj Finance. The price band of Bajaj Housing Finance IPO has been fixed at ₹66 – 70 per share. At the upper end of the price band, the company is valued at close to ₹58,000 crore, making it India’s most valuable housing finance company. Bajaj Finance share price has gained over 8% in the past one month, while Nifty 50 has gained nearly 2%.

According to Macquarie,

At ₹58,000 crore after applying a 20% holding company discount, Bajaj Finance’s share price adequately reflects the optimism around the IPO. At the upper end of the price band, Bajaj Housing Finance is trading at 2.6x FY26E P/BV (price to book value) post-money for a 2.5% ROA profile, Macquarie analysts said. They expect ROE to decline to 12% from the current 15% due to fresh money raised. Macquarie analysts said, “We believe if Bajaj Housing Finance gets a bumper listing, other housing finance companies could also possibly revalue. The current grey market premium seems to be around ₹56. If Bajaj Housing Finance lists at a ~50% premium, Bajaj Finance’s stock is likely to rise by another 5%.