Positive play! Long ignored by market, Bajaj Housing Finance IPO could trigger a rerating for NBFCs
IPO of Bajaj Housing Finance might have a spillover effect on the overall NBFC sector with the anticipated interest rate cuts going forward and valuations remaining attractive.
Bajaj Housing Finance raised Rs 6,500 crore through its IPO and received overwhelming market response with bids exceeding Rs 3 lakh crore. This strong interest was driven by factors such as strong parentage, reasonable valuations, and the current IPO euphoria.
Analysts said the Bajaj Housing IPO could trigger a sector-wide rerating for NBFCs as despite delivering healthy growth and maintaining robust asset quality, they have been overlooked by the market for the past three years.
Listing gains could soar up to 113% as Street awaits debut of Bajaj Housing Finance, 2 other IPOs
«The sector faced margin pressures due to rising capital costs. However, with interest rate cuts anticipated and valuations remaining attractive, NBFCs now present a better risk-reward ratio,» said Krishna Appala, Sr Research Analyst, Capitalmind Research.
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