Why did Bajaj Housing Finance (BAJAJHFL) stock fall 9% today?

Bajaj Housing Finance shares dropped nearly 9% due to a major block deal executed at a steep discount and the promoter’s mandatory stake reduction to meet SEBI’s 25% Minimum Public Shareholding (MPS) norms.

What was the reason behind the large block deal in Bajaj Housing Finance?

The block deal involved around 19.5 crore shares being sold at ₹95–₹97, almost 10% below the previous close. This discounted sale triggered panic selling and led to a sharp fall in the stock price.

Why is the promoter reducing its stake in Bajaj Housing Finance?

Bajaj Finance, the promoter, held 88.7% of Bajaj Housing Finance and is required by SEBI to bring public shareholding to 25%. This forced compliance is the reason behind the ongoing promoter stake sale.

Will more promoter selling affect Bajaj Housing Finance stock in the coming months?

Yes. Bajaj Finance plans to sell up to 2% more stake by February 2026. This creates a supply overhang, which may keep stock sentiment weak and limit short-term recovery.

How has Bajaj Housing Finance stock performed since its IPO?

The stock debuted in September 2024 at ₹70, surged to nearly ₹190, and has since corrected sharply. After today's fall, the stock is trading almost 50% below its post-IPO highs.

Why Bajaj Housing Finance Stock Crashed 9% Today: Explained

Bajaj Housing Finance (BAJAJHFL) shares witnessed a severe drop today, December 2, 2025, plummeting by nearly 9% and hitting a 52-week low. This steep fall has naturally caused concern among investors, especially since the stock has already been under pressure following its IPO debut last year.

What caused this sudden sell-off? The answer lies in a significant corporate action: a large-scale sale of shares sold by the company's promoter, driven by regulatory requirements. Let's break down the two main reasons why the stock cracked today.

Two Reasons Behind the 9% Stock Crash

The primary reason for today's sharp decline is a massive reduction in promoter stake, which created an immediate supply shock and negative sentiment in the market.

1. The Block Deal and Discounted Price

The immediate trigger was a huge block deal executed this morning. A block deal is a single trade of a large volume of shares (over 5 lakh shares or ₹5 crore value). Here are the key facts about today's deal:

Shares Traded: Approximately 19.5 crore shares, which equals 2.35% of the company.
Discount: These shares were sold at a base price of around ₹95 to ₹97 per share. This price was a steep discount of nearly 10% compared to yesterday's closing price.

The Market Impact: When a major block of shares is sold at a heavy discount, it signals to the wider market that a large investor (in this case, the promoter) is willing to offload the stock at a lower valuation. This triggers panic selling from other investors who fear the stock price will drop further, leading to the sharp 9% decline.

2. Regulatory Need to Reduce Promoter Stake

This share sale is not voluntary; it's mandatory. Bajaj Housing Finance's promoter, Bajaj Finance, is required to reduce its ownership to meet SEBI's Minimum Public Shareholding (MPS) rule.

The Rule: SEBI mandates that at least 25% of a listed company's shares must be held by the public. Bajaj Finance held 88.7% of the company, meaning it must sell shares.
The Plan: Bajaj Finance announced its intention to sell up to 2% of its stake over the next few months (from today until February 2026). Today's block deal was the first major step in this compliance process.

The Investor Fear: Knowing that a huge volume of shares is still scheduled to enter the market over the next few months creates a "supply overhang." This continuous threat of future selling keeps investor demand low and caps the stock's potential for recovery in the near term.

Bajaj Housing Finance: IPO Journey in Brief

While today's event is about compliance, it comes after a period of poor performance. The stock debuted in the market in September 2024 at an issue price of ₹70 per share. After a strong initial jump to nearly ₹190 post-IPO, the stock has been losing ground and is now down almost 50% from those peak levels.

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Conclusion

The 9% drop in Bajaj Housing Finance stock today was a direct reaction to the promoter selling a large chunk of shares at a discount to meet regulatory requirements. While the underlying company remains strong in the housing finance sector, the short-term impact of mandated share supply and negative sentiment is dominating its price performance.