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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The NBFC’s stock has fizzled a fair bit since its dream debut despite doing all the right things. Competition, circumstances and conservatism are ailing it.
Editor's note: This piece is for public market investors of Bajaj Housing Finance. There is information and analysis that you can use to make actionable decisions on allocating your money to this specific company or its competitors. This copy is also a must-read for IPO investing enthusiasts.
When Bajaj Housing Finance listed in September 2024, it was one of the hottest stock market debuts of the year. The mortgage lending arm of India’s top non-bank lender, Bajaj Finance, saw its initial public offering subscribed over 64x despite its princely valuation. The stock was listed at an impressive 114% premium to its issue price. Today, though, the party has soured remarkably.
The stock is down nearly 40% from the record high it registered post its listing. And while the company continues to grow its loan book and profit comfortably ahead of peers, its share price is down 16% …
Bajaj Auto Credit is already driving profits for India’s second-largest two-wheeler maker. With a fundraise on the cards, the captive NBFC is entering the fast lane.
Despite the go-go narrative, it is clear that the country’s economic growth is in a funk. What’s more, history shows that further interest rate cuts to fuel stalled growth will be as futile as flogging a dead horse.
An industry letter to the central bank has sought clarification on the regulator’s advice to some NBFCs to cease or modify their supply-chain finance products.
