Bajaj Housing Finance witnessed a sharp decline in its shares, tumbling nearly 9% to reach a new 52-week low of Rs 95.57 in early trading on Tuesday. The stock has been on a downward trend for several months.
Over the past 5 days, the stock has dropped by almost 10%, while the decline over the past month stands at 13%. Looking further back, the stock has seen a decrease of 22.83% in the last 6 months, 28.85% over the past year, and 41.46% over the last five years.
The recent slide in the stock price followed a significant block deal and a planned stake sale by its parent company, Bajaj Finance Ltd.
The block deal involved 19.5 crore shares, representing 2.35% of the company’s equity, traded at Rs 97 per share, totaling Rs 1,890 crore. This transaction occurred shortly after Bajaj Housing Finance announced that its parent company, Bajaj Finance, would sell up to 2% of its stake through open market transactions to meet regulatory requirements.
As of the end of the September quarter, Bajaj Finance held 88.7% of Bajaj Housing Finance and needs to reduce its ownership to comply with public shareholding rules. The proposed stake sale involves up to 166.6 million shares and will be carried out between December 2, 2025, and February 28, 2026, in multiple tranches.
Reports indicate that the block deal is valued at approximately USD 176 million, with a base price of Rs 95 per share, representing a 9.6% discount from the previous day’s closing price. Such discounts typically exert downward pressure on the stock in the short term.
Bajaj Finance has also agreed to a 60-day lock-up period for further share sales, and both Bajaj Finance and Bajaj Finserv, the promoters, have committed not to buy shares on sale days, in accordance with regulatory guidelines.
Bajaj Housing Finance made its stock market debut at an IPO price of Rs 70 per share last year. Although the stock initially surged to highs near Rs 190, it has since retreated by nearly 50% from its peak levels due to ongoing stake sales and selling pressures.
Specializing in home loans, loan against property, and developer financing, Bajaj Housing Finance is a prominent player in the housing credit sector. However, the company is expected to face continued near-term volatility amid the ongoing promoter stake sales and selling pressures.