Bajaj housing finance share why down is the big question investors are asking today after seeing their investments drop sharply. The stock crashed nearly 9 percent on December 2, 2025, opening at Rs 95 and touching an intraday low of Rs 94.05.
This marks a fresh 52-week low for the company that was once trading at Rs 190 just months ago. The market cap now stands at around Rs 79,240 crore with heavy selling pressure visible throughout the trading session.
The main reason behind this steep fall is a massive block deal executed by promoter Bajaj Finance. The parent company sold around 19.5 crore shares representing 2.35 percent stake worth Rs 1,890 crore at Rs 97 per share.
This was done to meet minimum public shareholding norms set by SEBI which require at least 25 percent public ownership. Currently promoters hold 88.7 percent stake and need to bring it down gradually. The floor price of Rs 95-97 was nearly 9 percent discount to previous closing price of Rs 104.59 which triggered panic selling among retail investors who feared more downside ahead.
Key Takeaways
- Bajaj Housing Finance shares fell 9 percent to Rs 95 due to promoter stake sale via block deal
- Bajaj Finance offloaded 2.35 percent stake worth Rs 1,890 crore at discounted price
- Stock has corrected 50 percent from post-IPO peak of Rs 190 in just few months
- Promoter selling will continue till February 2026 to meet 25 percent public holding requirement
- Despite fall Q2 results were strong with 18 percent profit growth and solid fundamentals
- Technical indicators show oversold conditions but bearish momentum continues
- Stock trading below all major moving averages signaling weak sentiment
Also Read: Sudeep Pharma IPO Allotment Is Out As Retail Interest Hits 93 Times Subscription
Understanding the Block Deal Impact
The block deal announcement came as a shock to many shareholders who bought at higher levels. Bajaj Finance needs to sell up to 166.6 million shares in tranches between December 2, 2025 and February 28, 2026.
The first tranche itself saw massive volumes with over Rs 2,075 crore worth shares changing hands. This is more than double the average daily turnover. When promoters sell at discount prices it sends negative signal to market participants.
Many retail investors thought if promoters are willing to exit at Rs 95-97 levels then maybe the fair value is even lower. This psychology created selling cascade throughout the day.
The regulatory backdrop is important to understand here. SEBI mandates all listed companies must have minimum 25 percent public float.
Bajaj Housing Finance went public in September 2024 through a highly successful IPO priced at Rs 70 per share. The IPO was oversubscribed 67 times showing massive demand.
However RBI had directed upper layer NBFCs to list by September 2025 and now post-listing the promoters need to reduce their holding from current 88.7 percent level. Bajaj Finance and Bajaj Finserv both gave undertaking that they will not buy back shares on days when they are selling for MPS compliance.
Post-IPO Reality Check for Investors
Many investors are now facing heavy losses after the stock surged to Rs 190 on listing day driven by hype and momentum. That represents a 171 percent gain from issue price creating FOMO among late entrants. However the correction has been brutal since then.
Stock is now down 41-50 percent from those highs and 18 percent year to date. This is classic case of post-IPO pump and dump that happens with overvalued listings.
Brokerages like HSBC had flagged concerns in January 2025 cutting price target to Rs 90 citing slower EPS growth, margin compression from rate cuts and normalizing credit costs.
The parent company Bajaj Finance also revised its FY26 AUM growth guidance downward to 22-23 percent from earlier 24-25 percent in November 2025.
They cited MSME sector slowdowns with only 10-12 percent growth expected and rising NPAs which jumped 19 percent year on year to Rs 2,269 crore in Q2 FY26. Two wheeler and three wheeler loans are seeing higher defaults with NPA ratio at 12.08 percent.
Cost of funds is projected at 7.5-7.55 percent range while credit costs will be at higher end of 1.85-1.95 percent band. These parent company issues are spilling over to Bajaj Housing Finance sentiment even though the housing finance business fundamentals remain relatively stronger.
Technical Picture Looks Weak Short Term
From technical analysis perspective the stock is in deep trouble. It is trading below all key moving averages including 5-day, 20-day, 50-day, 100-day and 200-day averages. The 50-DMA stands at Rs 109 while 200-DMA is at Rs 116 both acting as resistance now.
MACD indicator shows bearish crossover on weekly charts and Bollinger Bands indicate downward pressure continuing. Money Flow Index at 23 suggests oversold territory which typically means some bounce can happen but overall trend remains down.
Daily moving averages also confirm bearish setup with lower highs and lower lows pattern visible on charts.
However there are some mild positive signals emerging. KST indicator on weekly timeframe shows slight bullishness and RSI is not showing extreme readings yet. Some traders are seeing this as potential dip buying opportunity especially given the strong Q2 FY26 results.
The company reported net profit of Rs 643 crore up 18 percent year on year. Revenue stood at Rs 2,755 crore growing 14 percent while net interest income surged 34 percent to Rs 956 crore. AUM growth has been solid though moderating and asset quality remains pristine compared to parent company issues.
What Should Investors Do Now
The big question is whether to buy at these beaten down levels or wait for more clarity. Value hunters are getting attracted as P/E ratio has come down to 15-16 times which is below sector average. Long term bulls point out that housing finance sector will benefit when RBI starts cutting interest rates making home loans cheaper.
The sector is seeing strong growth momentum with real estate boom in tier 1 and tier 2 cities. Bajaj Housing Finance has maintained good margins despite declining interest rate environment and competition from banks and other NBFCs.
But risks remain significant in near term. More tranches of promoter selling are pending till February 2026 which will keep pressure on stock price. Each time block deal happens at discount to market price it will trigger fresh selling.
Analysts have mixed ratings with nearly 50 percent giving sell recommendation. HSBC target of Rs 90 suggests another 5 percent downside possible from current levels. On positive side if selling exhausts and market sentiment improves stock can rebound to Rs 110-120 zone as oversold conditions get reversed.
Market Sentiment and Social Media Buzz
Retail investor sentiment on social media platforms has turned largely negative with around 70 percent posts being bearish. Many are warning others not to get trapped in post-IPO rigging and wait patiently for better entry points.
There are complaints about FOMO buying at Rs 180 levels and regret about not booking profits. However some experienced investors are seeing this as opportunity to accumulate quality asset at reasonable valuations.
They praise the strong fundamentals, low employee costs at just 5 percent of revenue and efficient operations compared to peers.
The housing finance sector itself faces headwinds from rising competition and margin pressure but long term outlook remains positive given India’s housing shortage and growing middle class aspirations.
Bajaj Housing Finance benefits from Bajaj brand name, distribution reach and risk management capabilities.
The company has delivered consistent performance with healthy growth and profitability track record since inception.
Final Verdict on the Fall
To sum up bajaj housing finance share why down comes down to promoter stake sale at discounted prices to meet regulatory requirements.
The 9 percent fall on December 2 was knee jerk reaction to block deal where promoters sold 2.35 percent stake worth Rs 1,890 crore at floor price of Rs 95-97 per share.
High trading volumes of over Rs 2,000 crore amplified the selling pressure taking stock to new 52-week low. While fundamentals remain strong with 18 percent profit growth in Q2 and solid asset quality the near term outlook stays challenging due to more promoter selling ahead.
Investors need to watch Bajaj Finance Q3 results for any spillover impact and monitor whether support holds at Rs 90-95 zone.
Risk appetite and investment horizon will determine whether current levels offer buying opportunity or its better to wait for complete washout.
The stock has underperformed both its sector and broader market indices making it stock specific story rather than market wide weakness. Caution is advised but long term investors can consider accumulating in small quantities with strict stop losses.
