On December 2, shares of Bajaj Housing Finance fell by more than 9 percent to Rs 95. This is the lowest level of the company’s shares after the explosive listing in September 2024. There has been a big reason behind this decline.
According to CNBC report, actually a big deal of 19.5 crore shares has been done in the company, the value of which was around Rs 1,890 crore. This transaction took place below the market price at Rs 97 per share. The stock came under pressure immediately after the deal and the shares slipped nearly 9%.
Pressure on company shares
About 2.35% stake of the company has been changed at Rs 97 per share. Because this deal was done at a discount from the market price, immediate selling is being seen.
Shares of this company have fallen by 7.37% on Sensex today at 10:28 am on Tuesday and are trading at Rs 96.80. The shares opened this morning at Rs 97.25 and made a high of Rs 97.
What should investors do?
Block deal is mainly a big transaction of shares between big investors, it does not reveal anything about the real strength or weakness of the company. This is just a big transfer of shares. At the same time, the deal being at a discount is an indication that the seller wanted a quick exit. This creates short term pressure, but it does not mean that there is any negative news in the company.
The third point is that in most of the cases this fall of shares after the block deal lasts only for a few days. As soon as the deal is completed, the pressure of extra shares in the market ends and the stock becomes stable again. That means this decline is short term, in the long term the real strength of the company is the same as it was before. Therefore, long-term investors should not be afraid, have faith in the business and fundamentals of the company and take their decision accordingly.
Bajaj Housing Finance told the stock exchange in a regulatory filing that its promoter company Bajaj Finance has said that it wants to sell some of its stake so that the company can at least complete the account of public shareholding as per the rules.
How were the company’s second quarter results?
Bajaj Housing Finance released its second quarter (July-September 2025) results and the company again showed good performance. Profit increased by 18 percent to Rs 642.96 crore compared to Rs 545.60 crore in the same quarter last year.
The largest part of the income came from interest, which is called net interest income, which increased by 34 percent to Rs 956 crore, which was Rs 713 crore last year. However, the net interest margin came down slightly to 4 percent, earlier it was 4.1 percent. The quality of loans has also improved. Gross NPA i.e. bad loans decreased from 0.29 percent to 0.26 percent, while net NPA remained stable at 0.12 percent.
When did the company enter the share market?
Bajaj Housing Finance made a spectacular market entry in September last year. The issue price of the IPO was Rs 70, but on the day of listing the shares opened at Rs 150 with a premium of 114 per cent. This IPO of Rs 6,560 crore was subscribed more than 67 times in just three days, which means investors showed tremendous interest and it became the most hit IPO of that year.
