- Shares of Bajaj Housing Finance fell over 9% to hit a record low on Tuesday
- Bajaj Finance to sell 2% stake to meet minimum public shareholding norms
- 2.5% equity changed hands at Rs 95 per share, a 9.6% discount to previous close
The shares of Bajaj Housing Finance Ltd. fell over 9% on Tuesday to hit record low as promoter Bajaj Finance will offload 2% stake to comply with the requirements of minimum public shareholding.
According to Bloomberg, 2.5% equity of the company changed hands through 21 bunches on Tuesday. The floor price for the block deal is Rs 95 per share, a 9.6% discount to the previous close, as per a termsheet accessed by NDTV Profit. The deal value aggregates to Rs 1,580 crore.
The promoter stake aggregates to 88.7% of the total paid up capital of the company as on date. "Out of the total share capital held, the seller proposes to divest upto 2% of its equity share capital of the Company not exceeding in aggregate upto 166,600,000 shares in one or more tranches," an exchange filing said on Monday.
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According to SEBI rules, listed companies must have at least 25% public float to ensure market integrity and liquidity. Companies with a post-issue market capitalisation (market cap) between Rs 50,000 crore and Rs 1 lakh crore have up to five years to meet the 25% MPS, and those with a market cap over Rs 1 lakh crore can have up to ten years.
The remaining promoter equity will be locked-in for 60 days.
IIFL Capital Services Ltd. is the sole merchant banker to the deal.
Bajaj Housing Finance Share Price
The scrip fell as much as 9.08% to Rs 95 apiece on Tuesday the lowest since its listing last year. It pared gains to trade 8.82% lower at Rs 95.27 apiece, as of 9:35 a.m. This compares to a 0.23% decline in the NSE Nifty 50 Index.
It has fallen 28.67% in the last 12 months and 24.59% year-to-date. Total traded volume so far in the day stood at 3.47 times its 30-day average. The relative strength index was at 34.50.
Out of 11 analysts tracking the company, two maintain a 'buy' rating, three recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 111.10 implies an upside of 16.6%.
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