Bajaj Housing Finance Shares Surge Over 3% After Lock-In Period Ends
Posted on April 15, 2025, by Niftynews
Bajaj Housing Finance shares jumped 3.3% on Monday, gaining investor attention following the end of the company’s one-year shareholder lock-in period. The stock rose to ₹123.3 during intraday trade, with analysts and market watchers speculating about the potential impact of newly tradable equity hitting the market.
This price movement comes as a staggering 64% of Bajaj Housing Finance’s outstanding equity—amounting to 529.1 crore shares—became eligible for trading, according to a note from Nuvama Alternative & Quantitative Research. While the end of the lock-in doesn’t mean an immediate mass sell-off, it marks an important shift in the company’s trading dynamics.
Why Bajaj Housing Finance Shares Are in Focus
The expiration of the lock-in period is significant because it allows early investors, promoters, and institutional stakeholders to sell their shares on the open market. This can result in increased liquidity and occasionally, short-term volatility. However, not all eligible shares are sold at once, and often, large shareholders wait for favorable pricing before exiting.
In the case of Bajaj Housing Finance, promoters continue to hold a robust 88.75% stake in the company, as of the quarter ending December 2024. This suggests continued confidence in the company’s long-term vision and reduces the risk of sudden, large-volume sell-offs.
Strong Financials Behind
Beyond the technical reason driving Monday’s stock movement, Bajaj Housing Finance shares have solid financial fundamentals to back up investor confidence. For the March 2025 quarter, the company posted impressive growth across key financial metrics:
Loan disbursements grew by 25% year-on-year, reflecting strong credit demand.
The total loan book stood at ₹99,500 crore.- Assets Under Management (AUM) surged by 25.5%, reaching ₹1.14 lakh crore.
The securitisation book also expanded nearly 26% year-on-year.
This consistent double-digit growth demonstrates the company’s effective strategy in tapping into India’s rising demand for housing finance, especially in Tier 2 and Tier 3 cities.
Analysts Offer Mixed Ratings on Bajaj Housing Finance Shares
Despite robust financial performance, market analysts remain divided on the outlook for Bajaj Housing Finance shares. Out of nine analysts covering the stock:
Five have issued a “Sell” rating
Three recommend a “Buy”
One maintains a “Hold” stance
While the stock remains well above its IPO price of ₹70, it is still trading significantly below its post-listing high of ₹188. This places it in a range where it could either consolidate or see renewed buying, depending on broader market cues.
What’s Next?
With the lock-in period behind it, Bajaj Housing Finance shares enter a new phase of market participation. Here are a few things investors and analysts will be watching closely in the coming weeks:
1. Promoter Activity
Any decrease in promoter shareholding could signal profit-taking or diversification, which may affect stock sentiment.
2. Trading Volume Surges
If volumes rise sharply, it may indicate institutional repositioning or increased interest from retail investors.
3. Interest Rate Trends
As a lender, Bajaj Housing Finance’s margins are sensitive to changes in policy rates. A dovish RBI stance could support future loan growth.
4. NBFC Sector Regulations
Being a Non-Banking Financial Company (NBFC), any tightening of regulations could influence growth strategy and investor sentiment.
Conclusion:
The surge in Bajaj Housing Finance shares following the lock-in expiry is more than just a short-term reaction. With strong disbursement growth, expanding AUM, and high promoter confidence, the company appears well-positioned for future growth. However, mixed analyst ratings and broader market volatility suggest that caution may still be warranted.
For investors, this may be a stock to watch—especially as market conditions stabilize and regulatory clarity improves. Whether you’re considering a long-term position or a short-term trade, Bajaj Housing Finance shares certainly deserve a place on your radar right now.
