Bajaj Housing Finance IPO: Why you should buy Bajaj Finance, Bajaj Finserv shares this week?

Bajaj Housing Finance IPO: The initial public offering of Bajaj Housing Finance Limited is expected to hit the Indian primary market in September 2024. So, the Red Herring prospectus of the public issue is expected to arrive next week, and all details, like opening date, price band, etc., are expected to be made public next week. However, the upcoming IPO has already created a buzz in the grey market as shares of Bajaj Housing Finance Limited are showing a premium of ₹42 in the grey market despite the announcement of the Bajaj Housing Finance IPO price band.

According to stock market experts, investors should buy Bajaj Finance and Bajaj Finserv shares by the end of this week as the Bajaj Housing Finance IPO RHP (Red Herring Prospectus) can be announced any time next week. As per the DRHP, those who hold the parent company stock before the RHP filing date will be eligible to apply for the upcoming IPO under the shareholder's category.

Bajaj Housing Finance IPO details

As per the DRHP, the company has explained about the eligible shareholders who can apply for the Bajaj Housing Finance IPO under the shareholders category, saying, "Individuals and HUFs who are public equity shareholders of our Promoters, excluding such other persons not eligible to invest in the Offer under applicable laws, rules, regulations and guidelines and any depository receipt holder of our Promoters, as on the date of the Red Herring Prospectus."

So, those who hold the parent company stocks (either or both) at the time of the RHP filing will be eligible to apply for the Bajaj Housing Finance IPO under the shareholder's category.

Speaking on Bajaj Housing Finance IPO, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “There is a buzz about the Bajaj Housing Finance IPO launch in September 2024. So, RHP of the upcoming issue may get filed next week if the management is serious about the IPO launch in September. So, those who want to apply for the upcoming IPO under the shareholder's category are advised to buy any of the parent companies by the end of this week and enhance their chances of getting Bajaj Housing Finance shares through the allotment process.”

Outlook for Bajaj Housing Finance parent companies

Speaking on the outlook for Bajaj Finance and Bajaj Finserv shares, Sumeet Bagadia, Executive Director at Choice Broking, said, "One can buy and hold Bajaj Finance shares at current market price for the near-term target of ₹7,400 apiece, maintaining stop loss at ₹6,850 per share. Similarly, one can buy and hold Bajaj Finserv shares at the current market price for the short-term target of ₹1,900 and ₹2,000, maintaining a stop loss at ₹1,700 per share."

So, by buying Bajaj Finance shares or Bajaj Finserv shares, an investor not only expects to earn on one's investment in the parent company's stock but also enhance the fancy of getting Bajaj Housing Finance shares through the IPO allotment process after applying for the Bajaj Housing Finance IPO.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.