Bajaj Housing Finance, India's second-most bid for IPO, set to slip below issue price

Shares of Bajaj Housing Finance are down 3% on Monday, March 30, and are on the verge of slipping below their IPO price of ₹70 per share. The stock has declined in five out of the last seven trading sessions.

Bajaj Housing Finance was India's most bid IPO at one point, with investors placing bids worth over ₹3 lakh crore, as against an IPO size of ₹6,560 crore. The issue was eventually outbid by LG Electronics India, which received bids worth over ₹4.5 lakh crore.

After making its stock market debut at a 110% premium to its issue price back in September 2024, Bajaj Housing Finance went on to hit a post-listing high of ₹188.5. The stock is now down 60% from those levels.

In the month of March, shares of Bajaj Finance's subsidiary have dropped nearly 15%, marking their worst month since listing. In fact, in the last 15 months, the stock has gained in only two of them, with five consecutive months of losses as of March.

On the charts, the stock is sharply in "oversold" territory, with its Relative Strength Index (RSI) now at 19. An RSI reading below 30 indicates that the stock is in "oversold" territory. The stock also trades below all important moving averages.

13 analysts have coverage on Bajaj Housing Finance, of which six have a "buy" rating, three say "hold", and four have a "sell" rating on the stock. ICICI Securities has the highest price target on the stock at ₹125, while HSBC has the lowest at ₹80. The stock trades below all of its consensus price targets.

Shares of Bajaj Housing Finance are trading 2.6% lower at ₹73.85. The company will be reporting its business update for the fourth quarter soon.