SEBI Eases Rules: Bajaj Housing Finance Set to Benefit

Bajaj Housing Finance, a subsidiary of Bajaj Finance, stands to benefit from SEBI's relaxed minimum public shareholding norms, extending the timeline for dilution.

SebiBajaj Housing FinanceMarket CapitalizationMinimum Public ShareholdingRegulatory NormsReal Estate NewsSep 12, 2025

SEBI Eases Rules: Bajaj Housing Finance Set to Benefit
Real Estate News:Bajaj Housing Finance Ltd., a subsidiary of Bajaj Finance Ltd., India's largest non-bank lender, could turn out to be a beneficiary of the Securities and Exchange Board of India's (SEBI) relaxation of minimum public shareholding norms. Bajaj Housing Finance made its stock market debut exactly a year ago, on September 16, 2024. Its promoter, Bajaj Finance, still holds an 88.7% stake in the company, which it will now have to bring down to 75% by 2029, instead of the earlier timeline of 2027.

SEBI, at the conclusion of its board meeting on Friday, announced that companies with a market capitalization between ₹50,000 crore to ₹1 lakh crore could achieve their minimum public shareholding of 25% within five years of listing, instead of the earlier timeline of three years. This relaxation is aimed at addressing the challenges faced by new issuers in undertaking substantial equity dilution within a short timeframe.

“The challenges in undertaking substantial equity dilution within a short timeframe, as faced by new issuers, are equally applicable to all listed entities that are yet to comply with the minimum public shareholding (MPS). Extending the proposed timelines to listed entities will ensure consistency and parity in regulatory treatment. Accordingly, the board has recommended that the proposed extended timelines may also be made applicable to the listed entities that are yet to comply with MPS, as per the existing timelines applicable to them,” SEBI wrote in its release.

Bajaj Housing Finance made its stock market debut exactly a year ago, on September 16, 2024. Its promoter, Bajaj Finance, still holds an 88.7% stake in the company, which it will now have to bring down to 75% by 2029, instead of the earlier timeline of 2027. The company has a market capitalization of ₹93,363 crore as of Friday's closing, which means it falls into the ₹50,000 crore to ₹1 lakh crore market cap threshold, and therefore, qualifies for the extension to five years.

Shares of Bajaj Housing Finance ended little changed on Friday at ₹112. The stock is down nearly 40% from its post-listing high of ₹188.45, but continues to remain above its IPO price of ₹70 per share. This relaxation in norms could provide Bajaj Housing Finance with more flexibility and time to manage its shareholding structure, potentially boosting investor confidence and market performance.

Frequently Asked Questions

What is the new timeline for achieving minimum public shareholding for companies with a market cap between ₹50,000 crore to ₹1 lakh crore?

The new timeline for achieving minimum public shareholding of 25% for companies with a market cap between ₹50,000 crore to ₹1 lakh crore is five years from the date of listing, instead of the earlier three years.

Why did SEBI relax the minimum public shareholding norms?

SEBI relaxed the minimum public shareholding norms to address the challenges faced by new issuers in undertaking substantial equity dilution within a short timeframe.

What is Bajaj Housing Finance's current market capitalization?

Bajaj Housing Finance's current market capitalization is ₹93,363 crore as of the latest closing.

What is the current promoter stake in Bajaj Housing Finance?

The current promoter stake in Bajaj Housing Finance is 88.7% held by Bajaj Finance.

How has Bajaj Housing Finance's stock performed since its IPO?

Bajaj Housing Finance's stock is down nearly 40% from its post-listing high of ₹188.45, but it continues to remain above its IPO price of ₹70 per share.

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