Bajaj Finance, Bajaj Finserv surge amid reports of Bajaj Housing Finance IPO talks

Bajaj Finance shares: Bajaj Group companies witnessed a surge in their share prices ranging from 1 per cent to 4 per cent following media reports speculating discussions between Bajaj Housing Finance, a subsidiary of Bajaj Finance Ltd, regarding a potential initial public offering (IPO).

Shares of Bajaj Finance soared 4.47 per cent to an intraday high of Rs 7336.9 apiece, while Bajaj Finserv Ltd witnessed a surge of over 4.86 per cent to an intraday high of Rs 1,659.6 apiece on the National Stock Exchange (NSE). Similarly, Bajaj Hindusthan Sugar Ltd experienced an uptick of almost 2 per cent at Rs 29.20, and Bajaj Holdings & Investment Ltd saw a surge of over 1 per cent, trading at Rs 8,200.

However, Bajaj Auto Ltd declined over 1 per cent to an intraday low of Rs 8,980.05 apiece on the NSE.

The anticipated IPO of Bajaj Housing Finance is reportedly valued at approximately $10 billion. This strategic move aligns with the regulatory directive from the Reserve Bank of India (RBI), mandating "upper layer" non-banking financial corporations (NBFCs) to go public within three years of notification. Bajaj Housing Finance, listed among the upper layer NBFCs, is required to be listed by September 2025, according to current RBI guidelines.

The proposed IPO is expected to bolster Bajaj Housing Finance's growth trajectory, as evidenced by its robust performance in recent quarters. With a 31 per cent year-on-year increase in assets under management and a 44 per cent surge in disbursements as of December 31, the lender demonstrates strong fundamentals and potential for sustained growth.