Shares of Bajaj Housing Finance Limited (BHFL) witnessed a sharp sell-off on Tuesday, crashing to a fresh 52-week low amid a massive block deal executed by its promoter. The stock nosedived as much as 9% during the trading session, reflecting heavy investor pressure following the large transaction.
Details of the Major Stake Sale
The precipitous fall was triggered by reports of a significant block deal where the company's promoter, Bajaj Finance, offloaded a 2.35% equity stake. The transaction was valued at approximately Rs 1,890 crore. Market data indicated that around 19.5 crore shares of Bajaj Housing Finance exchanged hands at an average price of Rs 97 per share.
Speculations prior to the deal had suggested a floor price of Rs 95 per share, which represented a discount of roughly 9% to the stock's previous closing price of Rs 104.59 on the National Stock Exchange (NSE). The proposed deal size was estimated to involve about 16.6 crore equity shares.
Stock Performance and Technical Outlook
On the Bombay Stock Exchange (BSE), the stock price plunged by 9% to hit an intraday low of Rs 94.90. By 11:30 AM, it was trading at Rs 97.85, down 6.36%. Similarly, on the NSE, the stock was trading at Rs 97.77, marking a decline of 6.48% at the same time.
The stock has been under considerable pressure since its market debut on September 16, 2024. It has declined by 23% over the past 12 months and is currently trading below both its 50-day and 200-day simple moving averages (SMAs) of Rs 109 and Rs 116, respectively. Technical indicators paint a bleak picture, with the Money Flow Index (MFI) hovering near 23, deep in the oversold territory. An MFI reading below 30 typically signals oversold conditions.
Strong Financials Contrast Market Weakness
Despite the bearish market sentiment, Bajaj Housing Finance has been reporting robust financial performance. For the July-September quarter of FY26, the company posted a net profit of Rs 643 crore, which is an 18% year-on-year increase from Rs 546 crore in the same quarter last fiscal.
Its quarterly revenue also saw healthy growth, climbing 14% to Rs 2,755 crore from Rs 2,410 crore a year earlier. On a sequential basis, profit after tax grew by 10% from Rs 583 crore in Q1FY26, while revenue increased by 5.3% from Rs 2,616 crore recorded in the April-June quarter.
Following this stake sale, Bajaj Finance continues to hold a dominant 88.70% stake in Bajaj Housing Finance, which translates to over 739 crore equity shares. The company's Rs 6,560 crore Initial Public Offering (IPO) had witnessed overwhelming demand, getting subscribed 67.43 times. The retail investor portion alone was subscribed 7.4 times. The IPO price band was set between Rs 66 and Rs 70 per share.
