Mumbai: In a surprising turn of events, Bajaj Housing Finance shares experienced a significant decline of nearly 9 percent, plummeting to Rs 95 during early trading on December 2. This sharp drop followed reports indicating that a massive 19.5 crore shares, constituting 2.35 percent of the company's equity, had exchanged hands at Rs 97 per share through a block deal valued at approximately Rs 1,890 crore. The scale of this transaction raised eyebrows among investors, leading to increased selling pressure as they sought clarity on the motivations behind the share offloading.
In the backdrop of this market reaction lies a strategic decision by the promoter, Bajaj Finance, which announced plans to divest up to 2 percent of its equity in Bajaj Housing Finance. As of December 1, the promoter held a substantial 739 crore shares, representing 88.7 percent of the company's paid-up capital—well above the regulatory threshold. This move is part of Bajaj Housing Finance's compliance with a guideline that mandates companies to maintain a minimum of 25 percent public shareholding. The company has officially stated that the sale period will extend from December 2, 2025, to February 28, 2026, or until the completion of the planned share sales.
This recent development comes on the heels of a remarkable market debut for Bajaj Housing Finance, which listed on September 16, 2024, at Rs 150, soaring over 114 percent from its issue price of Rs 70. The stock continued to rise post-listing, reaching approximately Rs 161, which inflated its market capitalization to over Rs 1.3 lakh crore. The IPO itself garnered extraordinary interest, with a subscription rate of 63.6 times, reflecting robust demand, particularly from institutional investors. The offering included a mix of new shares and shares offered for sale by Bajaj Finance.
The necessity for reducing the promoter's stake stems from regulatory requirements instituted by the Reserve Bank of India (RBI), which compel upper-layer non-banking financial companies (NBFCs) like Bajaj Housing Finance to list by September 2025. To comply with the regulation mandating that a minimum of 25 percent of shares be publicly held, Bajaj Finance must strategically reduce its stake to 75 percent or below. This recent block deal and the subsequent market reaction underscore the delicate balance between compliance and market perception for Bajaj Housing Finance, as it navigates the complexities of public shareholding requirements while striving to maintain investor confidence.
As the company moves forward, market observers will closely monitor the implications of the promoter's stake sale and its potential effects on share price stability. Investors are advised to stay informed about the ongoing developments in this scenario, given the significant role such strategic decisions play in influencing market dynamics.
