Bajaj Housing Finance Share Price Crashes 9% After Promoter Stake Sale: What Investors Should Know Now

Bajaj Housing Finance Ltd (Bajaj Housing Finance, ticker: BAJAJHFL) — once one of India’s hottest IPOs — is back in the headlines for a very different reason. On 2 December 2025, the stock tumbled around 9%, hitting a fresh 52-week and all‑time low near ₹94.90 after a large promoter stake sale via block deals spooked the market. ^[1]

The move comes just over a year after the company’s blockbuster listing and despite still‑strong loan growth and pristine asset quality. The sell‑off raises an obvious question for investors: is this a buying opportunity or a warning sign?

Bajaj Housing Finance share price today: record low on massive volume

By late morning trade on 2 December:

The stock hit an intraday low of ₹94.90, down roughly 9–9.2% from Monday’s close around ₹104.5. ^[2]
Quotes on major platforms showed the shares hovering around ₹95–98, with a day range of roughly ₹94.90–₹97.75 and a 52‑week range of ₹94.90–₹147.70. ^[3]
According to NDTV Profit, the stock was down 8.8% at ₹95.27 around 9:35 a.m., with volumes 3.5 times the 30‑day average and a Relative Strength Index (RSI) of 34.5, signalling that the stock is approaching oversold territory. ^[4]
Goodreturns flagged that trading volume was nearly 90× normal, as large investors rushed to participate in the block deals. ^[5]

The price fall stands out because the broader market weakness is modest by comparison. On the same day, the Nifty 50 slipped 0.45% to 26,059.7 and the Sensex fell 0.46% to 85,247.28, with financials down about 0.8% on profit‑taking near record highs. ^[6]

What triggered the sell‑off? Promoter stake sale to meet MPS norms

The core driver of today’s decline is a promoter stake sale by parent Bajaj Finance Ltd, executed via large block deals at a steep discount to Monday’s closing price.

How much did the promoter sell?

Different data providers are capturing slightly different slices of the flows, but they all point to a significant supply event:

Bajaj Finance currently owns 88.7% of Bajaj Housing Finance — about 739.1 crore shares — with the rest held by public shareholders. ^[7]
In an exchange filing, Bajaj Housing Finance disclosed that the promoter intends to sell up to 2% of its equity stake — a maximum of 16.66 crore shares — between 2 December 2025 and 28 February 2026, in one or more tranches. ^[8]

On 2 December specifically:

Economic Times reports that about 19.5 crore shares, representing roughly 2.35% of equity, changed hands in a block deal at ₹97 per share, for a total value of about ₹1,890 crore. ^[9]
NDTV Profit, citing Bloomberg data, notes that 2.5% of equity switched hands in 21 blocks, at a floor price of ₹95 per share, valuing the deal at around ₹1,580 crore. ^[10]
Moneycontrol estimates that 21.77 crore shares were traded at an average of ₹95.39, implying block‑deal turnover of about ₹2,077 crore, and a market‑cap erosion of roughly ₹7,000 crore in a single morning (from ~₹87,148 crore to ~₹80,224 crore). ^[11]
Reuters highlights that Bajaj Finance plans to sell a 2% stake for ₹17.4 billion (₹1,740 crore) at about a 9.6% discount to the previous close and that Bajaj Housing Finance shares changed hands in 40 block deals at a discount. ^[12]

The slight differences in stake and value reflect the fact that:

The official “up to 2%” sale plan is one thing,
While actual trading volumes on the day include both promoter offloads and other opportunistic institutional trades.

Either way, the market faced a wave of fresh supply at a discounted price — typically a recipe for short‑term pressure.

Why is Bajaj Finance selling?

This is largely about regulation and free float, not management “giving up” on the business.

Under SEBI’s minimum public shareholding (MPS) norms, listed companies are required to have at least 25% public float over time, with longer transition windows for very large firms. ^[13]
Bajaj Housing Finance went public in September 2024, with Bajaj Finance retaining a dominant stake. Today’s offload is part of the process of gradually increasing public float and meeting MPS requirements. ^[14]

India Today also notes that Bajaj Finance has agreed to a 60‑day lock‑up on further share sales, and that both Bajaj Finance and Bajaj Finserv will not buy shares on days when sales occur, in line with SEBI rules — a move meant to reassure the market about orderly execution. ^[15]

From a long‑term governance perspective, a higher public float can improve liquidity, index inclusion prospects and institutional participation. But in the short term, a promoter selling below the prevailing market price often sends a negative signal on perceived fair value, which is exactly what sparked today’s knee‑jerk reaction.

From blockbuster IPO to underperformer: how the stock got here

To understand the emotional whiplash around Bajaj Housing Finance, it helps to rewind to 2024.

The dream debut

The company’s IPO ran from 9–11 September 2024, with a price band of ₹66–₹70 per share and an issue size of about ₹6,560 crore. ^[16]
The offer was wildly oversubscribed — more than 60× overall, and over 200× in the institutional bucket, making it one of the most sought‑after Indian IPOs of 2024. ^[17]
Shares listed on 16 September 2024 at ₹150, a 114% premium to the issue price of ₹70, briefly valuing the company at around $16 billion and delivering one of the year’s strongest listing pops. ^[18]

The stock later climbed toward ₹190+, as investors cheered its low bad‑loan ratios, high growth and backing from the Bajaj group. ^[19]

The grind lower

Since then, the chart has been less flattering:

India Today calculates that the stock has now fallen about 10% over 5 days, 13% over one month, 22.8% over six months and 28.9% over one year. ^[20]
NDTV Profit puts the 12‑month decline at ~28.7% and year‑to‑date fall at ~24.6%. ^[21]
Moneycontrol notes the shares are down more than 36% from their listing price, but still about 36% above the IPO price of ₹70. ^[22]

In other words: IPO investors are still comfortably in the green, but those who chased the stock at or near listing highs have seen a very material drawdown.

Business fundamentals: growth still strong, but slowing at the margin

Today’s sell‑off comes despite Bajaj Housing Finance continuing to post robust headline numbers.

Q2 FY26 highlights (quarter ended 30 September 2025)

Across Reuters, ICICI Direct and Goodreturns, the picture is broadly consistent: ^[23]

Assets under management (AUM):
- Up 24% year‑on‑year to about ₹1,26,700 crore–₹1,27,000 crore.
Loan assets:
- Around ₹1.13 trillion (₹1,13,000 crore), up 26% year‑on‑year.
Net interest income (NII):
- Up ~34% year‑on‑year to roughly ₹956 crore.
Net total income:
- Up ~22–25% to about ₹1,097–₹1,012 crore (depending on the quarter snapshot).
Profit after tax (PAT):
- Up 18% year‑on‑year to about ₹643–₹640 crore.
Operating efficiency:
- Operating expenses / net total income improved to 19.6% in Q2 FY26 from 20.5% a year earlier.
Asset quality:
- Gross NPA ratio improved to 0.26% from 0.30% in the prior quarter and 0.29% a year earlier — extremely low by sector standards. ^[24]

Goodreturns further notes that pre‑provision operating profit (PPoP) rose ~24% year‑on‑year to about ₹880 crore, even as other income declined ~23%. ^[25]

So why is a company with this profile trading near its lows?

The catch: competitive pressure and guided growth moderation

In its Q2 commentary and prior guidance, Bajaj Housing Finance itself flagged slowing profit growth and more competition:

Reuters reports that Q2 FY26 represented the company’s slowest quarterly profit growth since listing, even though profit still grew 18% year‑on‑year. ^[26]
The company has cut its AUM growth guidance for the current year to 21–23%, down from 26% the previous year, citing “continued hyper‑competitive intensity” in prime home loans and subdued demand in some segments. ^[27]
Banks — especially PSU and large private banks — have been offering aggressively priced home loans, making it hard for non‑bank lenders like Bajaj Housing Finance to match rates without sacrificing margins. ^[28]
Management also flagged a rise in “BT‑outs” (balance transfers out), where good‑quality borrowers refinance from NBFCs to banks to lock in lower rates. ^[29]

The medium‑term guidance is still optimistic: the company expects AUM growth to pick up again from FY27 as new disbursements compound and retention improves. ^[30]

But the narrative has shifted from “hyper‑growth with pristine asset quality” to “high‑quality franchise facing a tougher competitive cycle.” For richly‑valued financials, that shift matters a lot.

Valuation check: premium to peers even after the fall

Even after today’s sell‑off, Bajaj Housing Finance is not cheap by sector standards.

According to Groww’s latest snapshot: ^[31]

Market cap: ~₹87,000 crore before today’s drop; intra‑day levels near ₹80,000 crore post block deals.
P/E (TTM): ~36.9×, vs an industry P/E around 26.6×.
Price‑to‑book (P/B): ~4.1×.
Return on equity (ROE):~11.1–11.15%. ^[32]
Debt‑to‑equity: around 4.4×, typical for a housing finance company with a largely secured book. ^[33]

MarketsMojo highlights an interesting disconnect: company profits have grown ~25% over the past year, but shareholders have seen negative price returns, reflecting derating rather than an earnings collapse. ^[34]

So part of today’s pressure is simply valuation catching down to a more modest growth outlook — with the promoter sale acting as the immediate trigger.

What are analysts saying after the crash?

Despite the sharp fall, the Street is not unanimously bullish. The tone is cautious to neutral.

Broader analyst consensus

NDTV Profit, citing Bloomberg, summarizes the current coverage as follows: ^[35]

Analysts covering the stock: 11
Ratings split:
- 2 Buy
- 3 Hold
- 6 Sell
Average 12‑month target price:₹111.10, implying roughly 16–17% upside from today’s levels near ₹95.

On other platforms:

Investing‑style consensus pages show a similar picture: a “Neutral” overall rating, with average targets around ₹110–₹111, a high estimate near ₹140 and a low around ₹82. ^[36]
Trendlyne reports that among two brokerages that have published detailed reports, the average target is about ₹122.5, implying ~25% upside from a reference price of ₹97.8, but also notes that at least one broker has downgraded its stance and/or reduced the target recently. ^[37]

In other words, analysts see some upside from here, but not enough to justify a strong consensus “Buy”, and some actually advocate reducing exposure.

Motilal Oswal: Neutral with ₹120 target

Goodreturns cites a fresh note from Motilal Oswal Financial Services (MOFSL):

MOFSL maintains a ‘Neutral’ rating on Bajaj Housing Finance with a target price of ₹120. ^[38]
The brokerage still likes the long‑term profitability story, projecting AUM CAGR of ~22% over FY25–28, broadly steady margins, and benign credit costs.
However, it warns that rising competition from PSU banks and increased BT‑outs could force Bajaj Housing Finance to cut lending rates, pressuring margins in the near term. ^[39]

Mehta Equities: short‑term pressure, “neutral to positive” medium term

Business Today quotes Prashanth Tapse, Senior VP (Research) at Mehta Equities: ^[40]

He notes that the stock has fallen from IPO price ₹70 to highs above ₹190, and that the promoter selling near ₹95 is understandably “disheartening” for some investors.
Tapse expects the short‑term trend in housing finance to remain under pressure, with the sector itself going through a period of consolidation.
On the group overall, he remains positive on Bajaj Finance and “neutral to positive” on Bajaj Housing Finance, suggesting that the long‑term story is intact but near‑term risk‑reward is more balanced.

Technical and sentiment picture: classic distribution day

Several data points suggest that today’s move is driven by institutional distribution rather than retail panic alone:

Exceptionally high volume: Moneycontrol pegs block‑deal volumes at ~21.8 crore shares and total trading value near ₹2,000 crore+; MarketsMojo notes that Bajaj Housing Finance was among the most actively traded stocks by value, with turnover close to ₹2,900 crore. ^[41]
Downtrend already in place: MarketsMojo articles flag that the stock has been in a continued downtrend, trading below key moving averages, with price action consistent with a bearish structure rather than a one‑off blip. ^[42]
Momentum nearing oversold: NDTV’s RSI reading around 34.5 is not yet “capitulation” (<30), but it does indicate persistent selling pressure. ^[43]

From a technical‑only perspective, the pattern resembles a “distribution day” at the end of a multi‑month decline: strong volume + big price drop + supply from a large holder. That often leads to continued volatility, even if some bargain hunters step in.

Parent company context: Bajaj Finance still strong

For many investors, Bajaj Housing Finance’s investment case is intertwined with its parent, Bajaj Finance Ltd:

Bajaj Finance has continued to show solid underlying profit growth. For the September 2025 quarter, core profits grew 24% year‑on‑year, even though reported PAT fell 24% due to the absence of a one‑off gain booked in the prior year from the Bajaj Housing Finance IPO. ^[44]
Bajaj Housing Finance remains a key growth driver within Bajaj Finance’s diversified lending portfolio, particularly in premium housing and loan‑against‑property segments. ^[45]

The parent’s decision to reduce its stake is therefore driven by regulatory and capital allocation considerations, not by an obvious operational blow‑up at Bajaj Housing Finance. But the optics of a promoter selling at a discount inevitably weighs on sentiment.

Key risks investors should watch

For anyone tracking Bajaj Housing Finance after this correction, several risk factors stand out:

Overhang from further stake sales
- The promoter’s plan to sell up to 2% of equity through February 2026 means there could be more supply over the next few months, even if a large chunk has already traded today. ^[46]
- A 60‑day lock‑in on remaining promoter holdings moderates but does not entirely eliminate concerns about future selling pressure. ^[47]
Competitive intensity and margin pressure
- Banks remain highly aggressive on prime home loans, compressing spreads and encouraging balance transfers away from NBFCs. ^[48]
- If Bajaj Housing Finance cuts rates to protect growth, return on equity could stagnate for a while, making its current premium valuation harder to defend.
Valuation risk
- Even after the derating, the stock trades at high‑20s to mid‑30s P/E and >4× P/B, versus more modest multiples for several other listed housing financiers. ^[49]
- If growth slows further, there is scope for additional de‑rating regardless of near‑term earnings beats.
Macro and regulatory environment
- Housing finance remains sensitive to interest‑rate cycles, property prices and regulatory capital norms for NBFCs.
- While current asset quality is extremely clean (GNPA ~0.26%), a macro shock could increase delinquencies from very low levels. ^[50]

Potential positives and medium‑term triggers

It isn’t all gloom. There are also potential medium‑term positives that could support the stock once the dust settles:

Improved free float and liquidity: A higher non‑promoter shareholding can boost institutional participation and index inclusion, which often leads to better trading liquidity and more stable ownership over time. ^[51]
Strong balance sheet and asset quality: GNPA levels around 0.26%, along with improving opex ratios, give management room to compete on price if necessary while still maintaining acceptable profitability. ^[52]
Long housing credit runway: Structural drivers — rising incomes, urbanisation, and preference for home ownership — continue to support housing finance demand, especially in the mid‑to‑premium segment where Bajaj Housing Finance is active. ^[53]
Parent support: Bajaj Finance’s strong balance sheet and brand can provide funding advantages and cross‑sell opportunities, which smaller standalone housing finance companies lack. ^[54]

If growth stabilises near the low‑20s AUM growth guided by management and margins hold up, today’s lower price base could eventually look attractive in hindsight. The key word, though, is “if”.

So is Bajaj Housing Finance a buy after the crash?

The market message on 2 December 2025 is not subtle: “Yes, it’s a quality franchise — but we’re not willing to pay any price for it, especially when the promoter is selling.”

Putting it all together:

Fundamentals: Still strong — high AUM growth, very low NPAs, improving cost ratios and rising profits. ^[55]
Trend: Clearly negative — the stock has been underperforming for months and just made a new all‑time low on massive volume. ^[56]
Valuation: Still at a premium to sector, even after the correction. ^[57]
Street view: Broadly neutral, with modest upside in target prices and a split ratings profile (more Sells than Buys). ^[58]

That combination tends to suit:

Long‑term, fundamentally focused investors who are comfortable with volatility and believe management can navigate competition and maintain high‑quality growth;
Less so for short‑term traders, who face continued supply overhang and a still‑weak technical structure.

From a risk‑management point of view, the more rational approach is to treat today’s move as new information, not as a guarantee that “it must bounce”. Price falling does not automatically make a stock “cheap” — especially when the insider selling price is part of what reset the market’s expectations.