Bajaj Housing Finance Share Price Crashes 9% After Promoter Stake Sale

Bajaj Housing Finance Share Price Crashes 9% After Promoter Stake Sale

The Bajaj Housing Finance share price suffered a dramatic fall on December 2, dropping over 9% to hit a new 52-week low of ₹95. This sharp decline came after promoter Bajaj Finance announced plans to sell up to 2% of its stake in the housing finance company.

Why the Stock Crashed?

Bajaj Finance currently holds 88.7% of Bajaj Housing Finance’s total equity. However, SEBI regulations require listed companies to maintain at least 25% public shareholding. Therefore, the parent company decided to offload part of its stake to comply with these norms.

Key Deal Details:

Aspect Details
Stake Being Sold Up to 2% (16.66 crore shares)
Deal Value Approximately ₹1,580-₹1,890 crore
Floor Price ₹95 per share
Discount 9.6% below previous close
Sale Period December 2, 2025 to February 28, 2026
Merchant Banker IIFL Capital Services Ltd.

Moreover, the block deal involved selling shares at a significant discount to the previous closing price of ₹104.59. Consequently, this spooked investors and triggered panic selling.

Stock Performance Analysis: The company’s journey since its IPO has been extremely volatile. Initially, shares opened around ₹70 and surged past ₹190 at their peak. Nevertheless, the recent sell-off has erased nearly half those gains.

Current Market Status:

  • 52-week low: ₹95
  • Previous close: ₹104.59
  • 12-month decline: 28.67%
  • Year-to-date fall: 24.59%
  • Trading volume: 3.47 times the 30-day average

Furthermore, the relative strength index stood at 34.50, indicating the stock entered oversold territory.

Analyst Recommendations: Market analysts remain divided on the stock’s future prospects. According to Bloomberg data:

  • Buy rating: 2 analysts
  • Hold rating: 3 analysts
  • Sell rating: 6 analysts
  • Average target price: ₹111.10 (implies 16.6% upside)

Thus, most analysts suggest caution before investing in the stock.

Company’s Financial Performance: Despite the market turbulence, Bajaj Housing Finance showed strong quarterly results. In Q2 FY26, the company reported:

Financial Highlights:

Metric Q2 FY26 Growth
Profit After Tax ₹642.96 crore 18% YoY
Net Interest Income ₹956 crore 34% YoY
Gross NPA 0.26% Improved by 3 bps
Net NPA 0.12% Stable

Additionally, the net interest margin stood at 4%, showing healthy profitability. The company’s asset quality also improved compared to last year.

What Investors Should Watch?

Several factors will influence the stock’s future movement:

  • Additional stake sales: More promoter selling could pressure prices further
  • Quarterly results: Future financial performance will be crucial
  • Interest rate changes: NBFC stocks are sensitive to rate movements
  • Public shareholding compliance: Progress toward 25% public float
  • Housing finance sector trends: Overall demand for home loans

Meanwhile, the remaining promoter equity faces a 60-day lock-in period after this sale.

The Bajaj Housing Finance share price remains under pressure as investors digest the promoter stake sale and await clarity on the company’s long-term growth trajectory.

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