Bajaj Housing Finance Shares Crash 9%
Bajaj Housing Finance witnessed a sharp sell-off on December 2, 2025, with its shares plunging nearly 9% to hit a new 52-week low. The trigger was a large block deal executed by its promoter, Bajaj Finance, which offloaded around 19.5 crore shares — equal to 2.35% of the company’s equity — for approximately ₹1,890 crore. The shares were traded at ₹97 apiece, reflecting a steep 9% discount to the previous day’s close of ₹104.59. motormitra
This sudden fall sparked intense market chatter, but the real story lies in a regulatory compliance exercise rather than any deterioration in business fundamentals.
Regulatory Pressure Behind the Stake Sale
Bajaj Finance currently owns a massive 88.7% stake in Bajaj Housing Finance. However, SEBI mandates that all listed companies maintain at least 25% public shareholding. To comply with this rule, promoters must reduce their stake within a stipulated timeline.
To meet the requirement, Bajaj Finance announced a structured plan to divest up to 2% of its stake in Bajaj Housing Finance over a window spanning December 2, 2025, to February 28, 2026.
Key details of the sale plan:
- Block deal price: ₹97 per share
- Discount offered: ~9.6% vs last close
- Value of sale: ~₹1,890 crore
- Reason: Maintain minimum public shareholding (MPS)
- No promoter buying: Bajaj Finance and related entities committed not to buy shares on sale days
- Lock-in period: Remaining promoter shares to be locked for 60 days motormitra
The promoter has framed this as a compliance-driven, transparent, and structured dilution, designed to bring in more public and institutional participation.
Volatile Journey Since Listing
Bajaj Housing Finance was listed in September 2024 at an issue price of ₹70 per share. Its journey since then has been anything but smooth.
Price trajectory:
- Listing price: ₹70
- Post-listing rally: Almost ₹190 at peak
- Current levels: ~50% below the highs
- 2025 performance: Down 18% YTD
- Sector comparison: BSE Financial Services Index is up nearly 15% in the same period motormitra
Despite the strong post-listing rally, the stock has struggled to hold investor confidence through 2025. The recent block deal intensifies the pressure further.
Strong Financials, Weak Sentiment
Interestingly, the company’s fundamentals remain healthy, even as its stock remains volatile.
Latest Quarterly Performance (Q2 FY26):
- Profit: Up 18% YOY to ₹643 crore
- Revenue: Up 14% YOY to ₹2,755 crore
- Loan book: Stable and expanding
- Asset quality: Remains under control
However, the market continues to remain cautious. Analyst recommendations currently skew towards:
- Sell / Hold: Majority
- Buy: Only a handful
The sentiment reflects concerns around valuation, volatility, and promoter stake concentration. motormitra
Why Did the Stock Fall So Much If Fundamentals Are Strong?
A promoter stake sale typically sends a negative short-term signal to markets, even if the reason is regulatory compliance. Investors often interpret it as:
- Potential oversupply of shares
- Short-term pressure on price due to increased float
- Concerns about future dilution
In this case, the 9% discount on block deal pricing clearly acted as a catalyst for the sell-off. motormitra
Market participants are closely watching:
- Upcoming tranches of promoter sales
- Stock movement toward the ₹95–₹100 price zone
- Institutional appetite for future stake sale windows
- Whether the stock stabilizes after the regulatory overhang clears
In the medium term, many analysts believe the business remains sound but the stock may stay range-bound until the promoter dilution completes.
The 9% crash in Bajaj Housing Finance shares on December 2, 2025, is primarily the result of a large, planned promoter stake sale carried out to comply with SEBI’s minimum public shareholding norms. While the stock has been volatile and remains far below its post-listing highs, the company continues to deliver strong profitability and revenue growth. motormitra
However, until the stake sale overhang clears, investor sentiment may remain subdued. For now, the market is reacting to supply pressure — not a breakdown in fundamentals — making the next few months crucial in determining how the stock recalibrates in 2026.
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