Bajaj Housing Finance Stock Crashes 9% After Massive Block Deal Buzz, Here's What Triggered The Sudden Selloff?

Mumbai: Shares of Bajaj Housing Finance saw a sudden and sharp fall in early trade on December 2, sliding nearly 9 percent to Rs 95. The drop came after reports that 19.5 crore shares, or 2.35 percent equity, had changed hands at Rs 97 per share through a block deal worth around Rs 1,890 crore. The heavy transaction created selling pressure in the market, as investors tried to understand who was offloading shares and why. Promoter’s Stake Sale Behind Market Reaction The slide came just one day after promoter Bajaj Finance revealed that it would sell up to 2 percent of its equity in Bajaj Housing Finance. As of December 1, the promoter held 739 crore shares, equal to 88.7 percent of the company’s paid-up capital—far higher than regulatory limits. In a regulatory statement, Bajaj Housing Finance confirmed that Bajaj Finance intends to sell part of its stake to meet the rule requiring companies to maintain at least 25 percent public shareholding. The company said the sale period will run from December 2, 2025, to February 28, 2026, or until all shares planned for sale are sold. A Look Back at the Company’s Strong Market Debut Bajaj Housing Finance had a spectacular stock market entry on September 16, 2024, listing at Rs 150, more than 114 percent above its issue price of Rs 70. After listing, the stock soared further to around Rs 161, giving the company a market value of over Rs 1.3 lakh crore. Its IPO, valued at Rs 6,560 crore, received massive demand—63.6 times subscription—especially from institutional investors. The issue included both fresh shares and an offer-for-sale by Bajaj Finance. Why Stake Reduction Was Required? Bajaj Housing Finance came out with its IPO to meet RBI rules, which require upper-layer NBFCs to be listed by September 2025. Since listed companies in India must ensure that at least 25 percent of shares are held by the public, Bajaj Finance must gradually reduce its stake to 75 percent or below. The recent block deal and proposed share sale are part of this compliance requirement, though they caused temporary market volatility.