- By Aditya Pratap Singh
- Mon, 14 Oct 2024 11:57 AM (IST)
- Source:JND
Bajaj Housing Finance Share Price: Shares of Bajaj Housing Finance fell more than 4% in early trading on Monday as the one-month lock-up period for shareholders ended today, October 14. Shares of Bajaj Housing Finance fell as much as 4.50% to trade at Rs 144 each on the BSE in morning trade. With the end of the month-long lock-up period, IIFL Securities said around 126 million equity shares or 1.5% stake in Bajaj Housing Finance will be eligible for trading in the stock market today.
The three-month lock-up period for Bajaj Housing Finance shares will expire on December 12, 2024, after which another 126 million shares will be eligible for trading. The 1-month share lock-up period refers to a period of one month during which certain shareholders are prohibited from selling or transferring their shares in the market.
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What is the duration of the lock-in?
When a company goes public through an IPO, certain investors are prohibited from selling their shares during a "lockup period" to stabilize the share price and prevent a sudden sell-off. During the lock-up period, shareholders such as company insiders, employees or early investors cannot sell or trade their shares in the open market, which helps stabilize share prices by preventing large volumes from entering the market in the face of events that could cause volatility.
Note that the end of the lock-up period does not mean that all shares will be sold in the open market. This implies that the shares will be eligible for trading. Bajaj Housing Finance's Rs 6,560 crore IPO was open from September 9 to Bajaj Housing Finance's IPO price band has been fixed at Rs 66 to Rs 70 per share.
