LIC Housing, PNB Housing shares fall 7% as Bajaj gets all the attention
LIC Housing Finance shares fell over 6% while those of PNB Housing Finance plunged nearly 7% as the stellar debut of Bajaj Housing Finance on Monday took away all the limelight from them. Bajaj's multibagger debut saw the stock get listed at a premium of 114%.
LIC Housing shares today fell to the day's low of Rs 678 on the NSE amid strong volumes as more than 92 lakh shares changed hands around 2 pm. On the other hand, PNB Housing fell to the day's low 1,061.05 following a Friday rally where the stock had hit its 52 week high of Rs 1,202.20.
Bajaj Housing Finance's gains did not stop at the listing price of Rs 150 as the stock hit the day's high of Rs 165. More than 63 crore shares were trading on the NSE around this time.
Valued at Rs 1.36 lakh crore now, Bajaj Housing shares now command a price-to-book (P/B) multiple of 6x which analysts say leaves little scope for higher upside potential and therefore unlucky allottees in the IPO should avoid chasing the stock at higher valuations.
«Apart from the rate of loan and quality of service, housing finance is a commoditized business. So I would rather buy the other housing companies — PNB Housing, LIC Housing — rather than try to buy now. If you are lucky enough to have gotten the IPO, then I would be a seller on listing,» said Dalal Street veteran investor Chakri Lokapriya.
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