Shares of a recently listed housing finance company dropped 4% to their day’s low of Rs 144.90 on the stock exchange as the 1-month share lock-in period of the stock expired today. This means that approximately 12.6 crore (126 million) shares, which were previously locked in and prohibited from sale, will now be eligible to be sold. These shares represent 2% of the total outstanding shares of the company, according to a domestic research report.

A 1-month share lock-in period refers to a timeframe 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 that major investors, such as 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. This helps stabilize the stock price by preventing a large influx of shares immediately after such events, which could cause volatility.

The shares of the housing finance company have declined 9.3% in the last two weeks while gaining 8.65% in the last week.

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