Bajaj Finance, Bajaj Finserv Top Nifty Gainers Ahead Of Housing Finance Arm IPO

Shares of Bajaj Finance Ltd. and Bajaj Finserv Ltd. rose the most among Nifty stocks as its housing finance arm's initial public offering is set to open on Sept. 9, according to the red herring prospectus. Shares of Bajaj Finance hit their highest level since Jan. 17, while those of Bajaj Finserv hit a 32-month high.

Bajaj Housing Finance IPO comprises a fresh issue amounting to Rs 3,560 crore and an offer for sale aggregating to Rs 3,000 crore from its promoter company Bajaj Finance. The equity shares carry a face value of Rs 10 each.

The company is inviting bids from anchor investors on Sept. 6, with the IPO issue set to close on Sept. 11.

The company intends to use the net proceeds to augment its capital base to meet future business requirements for onward lending.

Combined, both of them contributed 21 points to Nifty's rise at 11:22 a.m., when the index traded 60 points higher.

Shares of Bajaj Finance rose as much as 3.32%, the highest level since Jan. 17, before paring some gains to trade 3% higher at Rs 7,491 apiece, as of 11:24 a.m. This compares to a 0.33% advance in the NSE Nifty 50.

The stock has risen 1.25% year-to-date, but fallen 5% in the last 12 months. Total traded volume so far in the day stood at 1.36 times its 30-day average. The relative strength index was at 77.15, indicating that the stock may be overbought.

Of the 35 analysts tracking the company, 25 maintain a 'buy' rating, five recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 8.4%.

Bajaj Finserv stock rose as much as 4.25%, the highest level since Jan. 19, 2022. It pared gains to trade 4% higher at Rs 1,855 apiece, as of 11:28 a.m., compared to a 0.33% advance in the NSE Nifty 50.

It has risen 10% on a year-to-date basis and 20.43% in the last 12 months. Total traded volume so far in the day stood at 1.55 times its 30-day average. The relative strength index was at 82, indicating that the stock may be overbought.

Of the 35 analysts tracking the company, 25 maintain a 'buy' rating, five recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 8.4%.