On Tuesday the stock of Bajaj Housing Finance (BAJAJHFL) fell sharply — dropping 9 per cent to Rs95.00 per share at the time of opening after the announcement of a massive block-deal with Bajaj Finance, its sponsor Bajaj Finance.
What was the trigger for the sell-off
The sharp decline occurred after reports indicated there was evidence that Bajaj Finance had sold around 19.5 crore shares – approximately 2.35 percent of the equity in Bajaj Housing Finance in a block sale that was sold at an average at Rs97 a share. The transaction is believed to have moved around the sum of Rs1,890 crore in shares.
A regulatory document Bajaj Housing Finance confirmed that Bajaj Finance intends to divest up to 2 percent of its equity in a single or multiple tranches. The filing states that it is in compliance with the minimum requirements for public shareholding as the motivation behind selling.
The time frame for selling shares was set beginning on November 2, 2025 until the 28th of February, 2026or until all shares to be sold are sold, or until the shares are gone, whichever occurs sooner.
What caused the block-deal to lead to a the sharp drop in price
Promoters who make large block-deals can cause immediate supply pressure in the market. In this instance the selling of a large portion of shares sent a negative signal to investors, prompting panic selling and a significant discount in the price.
The price of the block deal is said to be a bargain. The price at Rs95 was 9-10 percent lower than earlier day’s price, which was Rs104.59 at the NSE. These discounts increase the perceived distance between what investors believes the value of the stock is and the price that the promoter is willing to accept, diminishing confidence of investors for the near term.
With promoter holdings at 88.7 percent at the time of December 1st, 2025. The divestment — even though it was limited to a mere 2 percent was significant enough to shock investors.
The stock’s trajectory to date
Bajaj Housing Finance made a highly anticipated market debut on the 16th September 2024. The IPO included a price range of between Rs66 and 70 per share. On the day of the listing, the stock trading at a price of Rs150, which was more than double the price of the IPO which was 114.28 percent.
Shortly after the IPO the stock, it climbed even higher in the following manner: on BSE it reached Rs160.92 and on NSE it climbed to Rs161around 130 percent increase in comparison to that IPO cost.
However, despite a positive start, the stock has been a subject of fluctuations. Prior to the block-deal that triggered the collapse, the stock was already in decline, a drop of about 18 percent by the year 2025.
What’s next?
The planned divestment is targeted towards achieving the obligatory public shareholding norm that requires at minimum 25 percent of a company’s shares to be owned by the public (i.e. not by promoters).
The Bajaj Housing Finance management has stated the fact that Bajaj Finance. And its promoter group will not purchase any shares at the time shares are being sold to be in line with the regulations.
In the short term the market could remain nervous due to expected future sales. Particularly in the event that large portions of the stock are being sold. In the long run the market will be heavily influenced by the demand for shares following sale, the rate of divestment, as well as general market sentiments within the housing finance sector.
