Bajaj Housing Finance to breathe straightforward after Sebi relaxes public shareholding rule

Capital markets regulator Sebi has eased guidelines for giant firms on assembly minimal public shareholding (MPS) norms, a transfer that may profit just lately listed Bajaj Housing Finance. Bajaj Housing Finance, which made its inventory market debut a yr in the past, has promoters holding 88.7% as of June 2025, whereas the general public shareholding stands at 11.25%.

With a market capitalisation of Rs 93,363 crore, the lender would have earlier wanted to carry promoter holding all the way down to 75% inside three years. Below the brand new guidelines, the corporate now has 5 years to fulfill 15% public shareholding and as much as 10 years to succeed in the 25% mark.

This rest is a part of Sebi’s broader revamp of itemizing rules. Firms with a market capitalisation between Rs 50,000 crore and Rs 1 lakh crore will now have extra time to dilute promoter stakes.

For even bigger firms with valuations above Rs 1 lakh crore, the deadline to adjust to the 25% MPS has been prolonged to 10 years.

Why it issues

Market specialists say the transfer will cut back the strain on firms to dilute stakes shortly after itemizing, which frequently results in value overhang and supply-demand mismatches. It additionally makes fundraising simpler and lowers the necessity for companies to hunt case-by-case exemptions.

“As firm valuations get bigger, it turns into troublesome for markets to soak up large-scale fairness dilutions in a single go. SEBI’s rest balances investor safety with sensible realities,” stated Makarand Joshi, Founder Associate, MMJC and Associates.

Backed by Bajaj Finance, Bajaj Housing Finance has emerged because the second-largest housing finance firm (HFC) in India. Its belongings below administration (AUM) grew at a 29% CAGR over FY20–FY25, reaching Rs 1.2 lakh crore as of June 2025.

Motilal Oswal famous that BHFL has a powerful franchise constructed on granular lending, a diversified mortgage e book, and a tech-driven distribution mannequin. Nonetheless, it expects RoE to remain average at 13–14% within the medium time period as a consequence of intense competitors within the prime dwelling mortgage phase.

The brokerage fashions an AUM and PAT CAGR of round 22% every over FY25–28 and has a Impartial ranking with a goal value of Rs 120, valuing the inventory at 3.6x Sep’27E P/BV.

For Bajaj Housing Finance, Sebi rest supplies worthwhile time to plan gradual dilution with out disrupting share costs. The rule change can be anticipated to encourage extra massive firms to checklist in India, easing their compliance burden whereas nonetheless making certain public participation grows steadily over time.