Bajaj Housing Finance to breathe easily after Sebi relaxes the public stock rule

Capital markets Regulator Sebi has facilitated rules for large companies to comply with the minimum standards for public shareholders (MPS), a relocation that will benefit the recently mentioned Bajaj Housing Finance. Bajaj Housing Finance, who made his stock market debut a year ago, has promoters with 88.7% from June 2025, while the public shareholding is 11.25%.

With a market capitalization of RS 93,363 Crore, the lender would have needed a promoter earlier within three years to hold the promoter to 75%. According to the new rules, the company now has five years to reach 15% public shareholding and up to 10 years to reach the 25%.

This relaxation is part of Sebi’s wider refurbishment of listing instructions. Companies with a market capitalization between RS 50,000 Crore and RS 1 Lakh Crore will now have more time to dilute the promoter offers.

For even larger companies with valuations above RS 1 Lakh Crore, the deadline to meet the 25% MPs has been extended to 10 years.

Why it matters

Markt experts say that the relocation will reduce the pressure on companies to quickly dilute the interests after the list, which often leads to price overhang and mismatches for the offer. It also makes fundraising easier and lowers the need for companies to find exemptions on a case -by -case basis.

“As business evaluations grow up, it becomes difficult for markets to absorb large -scale stocks of stock in one go. Sebi’s relaxation balances investor protection with practical realities,” said Makarand Joshi, founding partner, MMJC and Associates.

Supported by Bajaj Finance, Bajaj Housing Finance has emerged as the second largest housing financing company (HFC) in India. His assets in management (AUM) grew with a CAGR of 29% compared to FY20 – FY25 and reached RS 1.2 Lakh Crore from June 2025.

Motilal Oswal noted that BHFL has built a strong franchise on granular loans, a diversified loan book and a technically driven distribution model. However, it expects Roe to remain moderate in the medium term at 13-14% due to intense competition in the main segment of the first housing loan.

The brokerage models an AUM and PAT CAGR of approximately 22% each on FY25-28 and has a neutral rating with a target price of RS 120, so that the stock is rated at 3.6x Sep’27E p/BV.

For Bajaj Housing Finance, Sebi Relaxation offers a valuable time to plan gradual dilution without disturbing stock prices. The control change is also expected to encourage more large companies to mention in India, which makes their compliance burden facilitated and yet ensures that public participation grows steadily over time.