Bajaj Housing Finance Shares Fall 9% After Bajaj Finance Announces Stake Sale

On Tuesday, Bajaj Housing Finance share price fell 9.08%, touching a day’s low price of Rs 95 on NSE after Bajaj Finance announced plans to divest up to a 2% stake, involving approximately 166.6 million shares, to comply with minimum public shareholding requirements. The promoter currently holds an 88.70% stake, and the sale will occur in one or more tranches from December 2, 2025, to February 28, 2026.

Share Price Movement

Bajaj Housing Finance shares tumbled sharply on December 2, 2025, trading at Rs 96.84 by mid-morning, down 7.32%. The stock opened at Rs 97.05, hit a low of Rs 95, and saw high volume exceeding 358 million shares amid news of the promoter stake sale. This drop hit a fresh 52-week low, erasing IPO gains. The stock peaked at its 52-week high of Rs 147.70 earlier in 2025 but now stands 34% lower at Rs 96.84.

Financial Performance

Bajaj Housing Finance Q2FY26 results have impressed, with PAT rising 18% YoY to Rs 643 crore and net interest income up 34% to Rs 2,140 crore, driven by a 25% AUM growth to Rs 1.26 lakh crore and stable NIMs at 4.0%, alongside ROE of 13.44%. Asset quality remained stable, with gross NPA at 0.26% and net NPA at 0.12%, supported by 55% in home loans and average loan size rising to Rs 46.4 lakh; disbursements jumped 32% YoY to Rs 15,914 crore.

Management Guidance and Outlook

Management guided for 24-26% AUM growth in the medium term, GNPA to be in 40-60 bps, ROA of 2 to 2.2%, PCR in the range of 40 to 50%, and RoE in between 13% and 15%. The stake sale by Bajaj Finance will likely improve liquidity and float, positioning the company for housing sector tailwinds like RBI rate cuts and affordable housing push, despite short-term volatility. However, one should be wary of higher valuation concerns.