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The stock market experienced a significant drop in Bajaj Housing Finance shares on October 14th, with a decline of over 6 percent, coinciding with the expiry of the one-month lock-in period for anchor investors. This event unlocked a substantial 12.6 crore shares, representing 2 percent of the company's outstanding equity, making them eligible for trading. This surge in available shares had a noticeable impact on the company's market valuation, which dropped to Rs 1,18,259.68 on Monday. The stock's intraday low reached Rs 141.58 per share, reflecting a 6.16 percent decrease during the trading session.
The lock-in period, a common practice in IPOs, restricts the sale of shares by certain investors for a specified duration, aimed at stabilizing the stock price and preventing large-scale selling that could disrupt the market. With the end of this period, the unlocked shares can now be freely bought and sold, potentially influencing the company's stock price and overall market performance. Notably, another 12.6 crore shares are expected to become available for trading on December 12th, when the three-month lock-in period expires.
Bajaj Housing Finance, a subsidiary of Bajaj Finance Limited, made a strong debut on the stock market last week with its initial public offering (IPO). The IPO received overwhelming response with subscriptions totaling a whopping Rs 3.23 lakh crore. The company's shares were initially listed at a robust premium of 114 percent at Rs 150, reflecting a positive investor sentiment. However, the recent decline in the share price suggests a shift in investor sentiment, potentially due to the unlocking of a large volume of shares and the upcoming quarterly results announcement.
Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank, provides financial solutions for residential and commercial property purchases and renovations. The company is scheduled to release its first quarterly earnings report on October 21st, following its listing on the bourses. Investors will closely watch these results for insights into the company's financial performance and growth prospects, which could further influence the share price.
Source: Bajaj Housing Finance shares decline 6% as one-month lock-in period ends today