Bajaj Housing Finance Shares Down by 6%, Why the NBFC Stock is Declining?

Bajaj Housing Finance Shares: The NBFC (Non-banking finance company) stock witnessed a major decline on NSE and BSE during the morning trading session on Thursday. The share price declined by nearly 6 per cent on the bourses as the three-month lock-in period for anchor investors ends today.

At 10:30 am, the shares of Bajaj Housing Finance were trading at Rs 134.5, down by nearly 4.9 per cent on the National Stock Exchange. Since the week start, the stock has plummeted by nearly 7 per cent.

About 2 per cent of the company's total equity, or nearly 12.6 crore shares, is now available for trading as the lock-in period ends. While this doesn't mean that investors will for-sure sell their shares in the market, the choice remains open for them. The conclusion of the lock-in period simply means that those 12.6 crore shares are now available for trading.

Bajaj Housing Finance share price road

While the stock price has mainly been on a downtrend, the NBFC still remains well-above its issue price.

But since its listing, shares of Bajaj Housing Finance have declined by over 18 per cent. Notably, the initial public offering of the NBFC was one of the biggest of this year. The IPO witnessed robust investor interest, with subscriptions totaling around Rs 3.23 lakh crore.

The public offering comprised a fresh issue amounting to Rs 3,560 crore and an offer-for-sale worth around Rs 3,000 crore by its parent company, Bajaj Finance.

From its peak, touching Rs 188 price level, the shares have now declined by over 25 per cent on the bourses. During Q2FY25, Bajaj Housing Finance witnessed a surge of nearly 21 per cent in its net profit figure, reaching Rs 546 crore as compared to Rs 451 crore in the corresponding period last year.

However, the company's asset quality declined as gross non-performing assets rose to 0.29 per cent of total loans by the end of Q2 period, up from 0.24 per cent recorded a year earlier.