SEBI Board Meeting: This stock could be a beneficiary of the relaxed minimum shareholding norms

Bajaj Housing Finance Ltd., a subsidiary of Bajaj Finance Ltd., India's largest non-bank lender, could turn out to be a beneficiary of market regulator Securities and Exchange Board of India's (SEBI) relaxation of minimum public shareholding norms.

SEBI, at the conclusion of its board meeting on Friday, announced that companies having a market capitalisation 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.

“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 MPS. Extending the proposed timelines to listed entities will ensure consistency and parity i 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, on September 16, 2024. Its promoter Bajaj Finance still has a 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 capitalisation 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, 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.

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