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
The one-year target price for Bajaj Housing Finance shares is Rs 108, indicating a downside potential of 13% from current levels.
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)
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