Do we get any shares of bajaj housing limited based on bajaj finance holding ? or just have to apply via ipo, any insights on this?
There could be a quota for shareholders of Bajaj Finance and Bajaj Finserv.
No onus.
Bajaj Finance - Analysis - 25 Aug 2024.pdf (803.9 KB)
Pls check this.
2 Likes
Seems like Time Correction is going on !
However there seems to be no change in Sales growth as well as Profit growth.
Disc : Invested & Biased.
2 Likes
Has anyone analysed the valuation multiple for BHF? If the company lists at ₹140, representing a 100% premium, it would be trading at a P/B ratio of 6.4 based on the June 2024 book value. No other housing finance company is currently trading at such a high multiple. The market is assigning it a similar multiple to BFL (P/B of 6.04). Is this valuation sustainable?
I have tried this trick many times with some success. Many investors advise you to buy the best company in the sector. To me that sometimes becomes like chasing a helium filled baloon. When Titan was going great guns, I thought of Kalyan. Then of Radhika Jeweltech.
You often get entry into the sector through an easier door.
I have recently bought some Motilal Housing at a grand rate of ₹13.75. They are unlisted. Though they are not Bajaj, but they are Motilal, not a fly by night operator by any means. They are unlisted, but so was Bajaj Housing Finance till yesterday (it still is).
Only you will have to show patience.
I hope I have not really digressed from the topic.
1 Like
Hi, can you please share how you buy or sell unlisted companies?
1 Like
I have through Altius. I explore other sides too. Prices fluctuate between the sites. Spread could be massive. And the really hot stocks suddenly disappear.
There is a thread on unlisted shares.
2 Likes
At the risk of digressing a bit from the topic, can you just shed some light on why you decided to enter Motilal Housing at a P/B of 6.89. I understand in the future listing gains and everything will come into picture but right now since Bajaj Housing is floated for a 3.2 P/B that itself is much higher compared to other entities in the sector (most are below 2). The IPO frenzy may result in Bajaj being listed at a P/B of 6.4 maybe but considering the housing sector do you think this is sustainable, or you have some other thoughts?
Two things may happen from here onwards, either Bajaj Housing will fall after certain period of getting listed or other NBFCs will get rerated and may rise up. I maybe massively out of line on this but just want to understand your underlying logic of going with Motilal Housing.
2 Likes
“The ₹6,560-crore IPO of the Bajaj Group company generated an overwhelming response, with bids amounting to ₹3.24 lakh crore. This resulted in an overall subscription rate nearly 64 times the available shares. The retail individual investors (RIIs) segment saw a subscription of over seven times, while the demand from qualified institutional buyers (QIBs) surged to 209.36 times. Meanwhile, the non-institutional investors (NII) category witnessed a subscription of 41.51 times the shares offered.”
Source:
Retail oversubscription is just 7 times. It’s the others who generally is not in for listing gains did a lot of over subscription. I guess bajaj housing finance could hold the price due to scarcity premium.
Or it could go the Tata technologies way, issue price 500, listed at 1400 but within days it went to 1000 and now consolidating in the range of 950 to 1100. Anything we discuss about price sustenance will be nothing more than speculation.
Disc: Got one lot in IPO. Opinion is biased. I can be wrong as well.
2 Likes
Does it list swiggy? If so, what’s the price and what’s the lot size?
You may be right, but I can’t imagine a Motilal Oswal share opening at below ₹13.75. Housing Finance is flavour of the day too. Let me confess that I have not deep dived into it.
Yes. At ₹520.
Disclaimer: I am not invested in Swiggy.
1 Like
How does the stellar listing of Bajaj housing finance affect Bajaj Finance in terms of valuation multiples? Does anything change?
Working as you anticipated. I see you have a nice document created, it this something you provide as a service?
Swiggy CCPS was listed till a week back on InCred Money and that was at a price of 379. Minimum lot was around 5.5L+ worth. The CCPS is listed on Altius also but at a higher price of 420, and the shares are listed at about 520 as pointed above. Although it can have a Zomato story but the issue with Swiggy is that even at comparable business like Zomato they are making more than 1000Cr loss whereas Zomato is profitable. Keeping aside that Swiggy is aiming to list at around 550-600 (they are looking for a 60% valuation of Zomato).
Disclosure: After considering for quite some time, decided not to invest. Hence may have some negative bias.
3 Likes
Actually yes. Bajaj Finance still holds about 89% in Bajaj Housing and hence its valuation has increased with share price of Bajaj Housing cloking 180+ today. If you do rough calculations and take 6500 (25th Aug) of Bajaj Finance as the reference point, then in similar conditions Bajaj Finance price should be around 7700 (current 7400). So price of Bajaj Finance can go up by 4-5% provided Bajaj Housing stays at this level.
3 Likes
2 Likes