Balaji housing finance shares drop 4percent as one month lock in period expires on October 14

Shares of the recently-listed Bajaj Housing Finance dropped 4% to their day’s low of Rs 144.90 on the BSE as the 1-month share lock-in period of the stock expired today. This means that approximately 12.6 crore (126 million) shares of the company, which were previously locked in and prohibited from sale, will now be eligible to be sold. These 12.6 crore shares represent 2% of the total outstanding shares of the company, according to a report by domestic research firm Nuvama Alternative & Quantitative Research. A 1-month share lock-in period refers to a time frame of a month, during which certain shareholders are restricted from selling or transferring their shares in the market. Typically set at six months but sometimes extending up to a year, this period ensures major investors, like promoters and anchor investors, hold their shares, supporting the company’s long-term growth. During the lock-in period, shareholders such as company insiders, employees, or early investors are not allowed to sell or trade their shares in the open market, which helps stabilize the stock price by preventing a large influx of shares hitting the market immediately after such events, which could cause volatility. The shares of Bajaj Housing Finance have declined 9.3% in the last 2 weeks while gaining 8.65% in the last 1 week.
 

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