Recently listed Bajaj Housing Finance shares witnessed a huge decline on Monday. The shares are trading down by nearly 6 per cent as its one-month lock-in period for shareholders has ended. According to a note by Nuvama Alternative and Quantitative Research, 12.6 crore shares or 2 per cent of the company's outstanding equity will be eligible for trade once the lock-in period ends. However, the end of the lock-in period does not mean that all these shares will be sold in the open market, but only then will they be eligible for trade.

IPO price of ₹ 70 per share

Bajaj Housing Finance made its debut in the stock market on September 16 at an IPO price of ₹ 70 per share. After a 135 per cent jump on the day of listing, the stock made a high of ₹ 188 after listing, but has since declined from that level. The stock was trading at a listing price of ₹ 150 per share till Friday's close. Today, the company's stock is trading at Rs 141.90.
Brokerage opinion

Earlier this month, brokerage firm HSBC initiated coverage on Bajaj Housing Finance with a "reduce" rating and a price target of ₹110, indicating a potential downside of 26 per cent from those levels. HSBC said Bajaj Housing Finance's current valuation is 5.5 times FY26 price to book and 44 times FY26 price to earnings, implying high expectations for asset under management (AUM) and earnings growth. The
three-month lock-in period for Bajaj Housing Finance will end on December 12, after which 12.6 crore shares or 2 per cent of outstanding equity will become eligible for trading.