Bajaj Housing Finance Stock Rises 3% as One-Year Lock-In Expires; Over 500 Crore Shares Hit Market

The stock market has witnessed heightened activity with a 3% jump in Bajaj Housing Finance shares. Approximately 529 crore shares, representing approximately 64% of the company’s total equity, have been unlocked for trading as the one-year shareholder lock-in period ends. This milestone has sparked curiosity among investors and market enthusiasts alike. But what does this mean for the company, its shareholders, and the stock market?

Let’s break it down

What is a Lock-In Period?

A lock-in period (an anchor lock-in period) is a predetermined duration during which certain company shares cannot be sold or traded. Usually ranging from 90 to 180 days, this is often implemented after an Initial Public Offering (IPO) to ensure price stability and prevent a sudden influx of shares into the market. Once this period ends, investors can sell their shares, which may influence the stock price due to the increased supply. For Bajaj Housing Finance, this lock-in period lasted one year; now, over 500 crore shares are eligible for trading.

Key Financial Highlights of Bajaj Housing Finance

Bajaj Housing Finance has shown robust growth in its financial metrics:

• Assets Under Management (AUM): The company’s AUM grew by 26% year-on-year, reaching ₹1.14 lakh crore as of March 31, 2025. It was ₹91,370 crore in the previous year.
• Loan Assets: Loan assets also saw a significant increase, standing at ₹99,500 crore compared to ₹79,301 crore in the previous year.
• Gross Disbursements: For the January-March quarter, gross disbursements amounted to ₹14,250 crore, a notable rise from ₹11,393 crore in the same period last year. Source: Money Control

These figures highlight the company’s strong performance and its ability to cater to the growing demand for housing finance products.

The Impact on Bajaj Housing Finance Shares

Bajaj Housing Finance shares have garnered significant attention as the lock-in period ends. The stock is currently trading at ₹119.6 per share, which is over 70% higher than its issue price of ₹70. However, it’s important to note that the end of the lock-in period does not necessarily mean that all unlocked shares will be sold. It simply means that these shares are now eligible for trading.

The company’s shares debuted on the stock exchange at ₹150, as the ₹6,560 crore initial public offering (IPO) in 2024 saw a strong response from investors, with total subscriptions reaching an impressive ₹3.23 lakh crore. The IPO included a fresh equity issue worth ₹3,560 crore and an offer-for-sale (OFS) of ₹3,000 crore by its parent company, Bajaj Finance. However, despite this substantial rise, they are still trading below the listing price. This mixed performance has led to varied opinions among analysts and investors. 

As of 14 April 2025, shares of Bajaj Housing Finance were trading 3.3% higher at ₹123.3. While the stock is below its post-listing peak of ₹188, it continues to trade well above its IPO price of ₹70 per share. Source: CNBC TV18

What Does This Mean for Investors?

Unlocking shares has led to heightened trading activity and increased market interest. However, it’s crucial to understand that the end of the lock-in period does not guarantee a sell-off by investors. Many of these shares are held by promoters and group entities, who may choose to retain their holdings.

For retail investors, this development presents both opportunities and risks. While the increased availability of shares could lead to more liquidity and trading options, it could also result in price fluctuations depending on market sentiment.

As per the latest available data for the December 31, 2024 quarter, promoters continue to hold a dominant 88.75% stake in Bajaj Housing Finance.  Source: CNBC TV18

Analyst Opinions

Market analysts have expressed mixed views on Bajaj Housing Finance shares. While some might see growth potential, others remain cautious due to the stock’s current valuation and market conditions. The one-year target price for the stock is ₹108, indicating a potential downside of 13% from current levels.

Conclusion

The end of the lock-in period for Bajaj Housing Finance shares marks a significant milestone for the company and its investors. While the stock has shown robust growth since its IPO, it faces challenges in maintaining its momentum. Investors are advised to conduct thorough research and consult financial experts before making investment decisions.

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