Bajaj Housing Finance shares jump 5% as 1-year anchor lock-in ends today

Synopsis

Bajaj Housing Finance shares surged 5% as its one-year shareholder lock-in period ended, unlocking 5,291 million shares—64% of total equity. While the stock has gained 70% from its IPO price of Rs 70, it still trades 17% below its listing price. Analysts remain cautious, with a Rs 108 target, implying a 13% downside from current levels.

Shares of Bajaj Housing Finance surged 5% in Tuesday’s session to hit the day’s high of Rs 125.35 on the NSE, amid heightened trading activity after the company’s one-year shareholder lock-in period ended, making 5,291 million shares available for trading in the market.

The rally comes amid heightened investor interest in the newly unlocked shares and increased market activity around the counter.

According to data from Nuvama Alternative & Quantitative Research, 5,291 million shares, representing 64% of the total outstanding equity, were under lock-in and became eligible for trading from April 15.

The company, which was listed at Rs 70, is currently trading near Rs 125, marking a 70% gain over the issue price. However, the shares were listed on the exchanges at Rs 150, meaning they are now trading nearly 17% below their listing price.

An anchor lock-in period in an IPO refers to a fixed duration during which early investors are restricted from selling their shares after the company lists on the stock exchange.

However, the end of the lock-in doesn’t necessarily mean these investors will immediately offload their holdings—it simply means the shares are now eligible for trading.

Typically lasting 90 to 180 days, the lock-in period is designed to support price stability by preventing a sudden surge in share supply immediately after listing. Once the lock-in expires, investors are free to sell their shares, which can impact the stock’s price due to the potential increase in available supply.

Also read: “The crash has arrived”: Rich Dad Poor Dad author Robert Kiyosaki doubles down on gold, silver, Bitcoin strategy

Bajaj Housing Finance share price target

Of the eight analysts covering the stock on Trendlyne, five have issued a “sell” rating, two have recommended a “buy,” and one has assigned a “hold” rating.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

...moreless

...moreless