Shares of Bajaj Finance Ltd. surged to a two-month high on Thursday as its wholly owned subsidiary is likely preparing for an initial public offering by the end of 2024.
The discussions for Bajaj Housing Finance Ltd.'s IPO are still in their initial stages and several investment banks are pitching for the mandate, people aware of the matter said on the condition of anonymity.
The company is said to be seeking a valuation of $10 billion. However, nothing is finalised yet as discussion is in nascent stage. The tentative size of the IPO is expected to be around $1 billion, the people added.
On the NSE, Bajaj Finance's stock rose as much as 4.47% during the day to Rs 7,336.90 apiece, the highest since Jan. 23. It was trading 3.16% higher at Rs 7,244.85 per share, compared to a 1.14% advance in the benchmark Nifty 50 as of 12:34 p.m.
The share price has risen 30.90% in the last 12 months. The total traded volume so far in the day stood at 3.5 times its 30-day average. The relative strength index was at 75.40, implying that the stock maybe overbought.
Out of 36 analysts tracking the company, 30 have a 'buy' rating on the stock, three recommend 'hold' and as many suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 18.8%.
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