Bajaj Housing Finance shares took a hit on Thursday (December 12), shedding over 6 per cent. One of the primary factors contributing to this recent dip in the share price of the company is the expiration of the three-month shareholder lock-in period.
The company’s stock closed at Rs 132.93, marking a decline of 5.99 per cent.
Let’s take a look at the reasons behind this drop:
The Lock-In Period Ends
A major factor to the sudden decline of the company’s stock is the ending of the three-month shareholder lock-in period today. This event released 12.5 crore shares, or 2 per cent of Bajaj Housing Finance’s total outstanding equity, into the market.
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Pre-IPO investors, who were restricted from selling their shares until now, can now offload their holdings, adding selling pressure to the stock.
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Market Reaction
The market responded negatively to this increased supply of shares. At 2:52 pm IST, the stock price stood at Rs 132.98, a 5.95 per cent decline.
Over the past five days, the stock has been down by 9.12 per cent. Bajaj Housing Finance’s shares have a P/E ratio of 50.54.
The market capitalisation of the company stands at Rs 1.11 Lakh Crore
The IPO Debut
Bajaj Housing Finance made a grand debut on the stock exchanges in September, listing at Rs 150, a 114.3 per cent premium over the issue price of Rs 70 per share.
Bajaj Housing Finance is a subsidiary of the Bajaj Group and the conglomerate includes major players like Bajaj Finance, a leading non-banking financial company, and Bajaj Auto, a dominant name in the automotive industry.
Bajaj Housing Finance made a grand debut on the stock exchanges in September,
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