Finserv has gone up nearly 7% in last 5 days. This is because people are buying Bajaja Finserv to apply for the Share Holder category of the Bajaj housing finance limited IPO. You can actually but the Bajaj Finserv share till the Bajaj housing finance limited files the DHRP. So they were supposed to file yesterday, if they have not filed today as well then we can see some upward movement tomorrow also.
PC: Google.com
Now with this new entity, Bajaj will have 3 companies Bajaj Finance and Bajaj Finserv which is already there and the new Bajaj Housing Finance. This will help Bajaj Housing Finance to self sufficient and the profit will be quite visible with this new company. With more and more Housing projects, more and more people are going for loan and thus these Housing finance companies are getting popular. This is mainly because these companies gives loans without a lot of verification which nationalized banks do. Yes that means the NPA of these companies will be on a higher side and to compensate that there interest rates are also higher.
With more rates, the profit will be more and eventually the share price will increase. Now coming back to getting ready. Just like what Tata Technologies have done for the IPO, there is a shareholding shares. That means in case of Tata Technologies if you had shares of Tata Motors you would be eligible for shareholders category. And in the same way, if you have Bajaj Finance or Bajaj Finserv shares you will be eligible for Bajaj Housing Finance shares allotment.
And that's why people are actually buying the Bajaj Finserv share because it is cheaper than Bajaj Finance. I have bought the Bajaj Finserv share long back and I am sitting at the profit of 8%. So even if I don't get the new shares, I will be happy with the profit I will be getting from the Bajaj Finserv. The Share Holder Criteria is actually a better criteria to apply because in this case you have more chances of getting the allotment.
