Shares of Bajaj Housing Finance saw a decline after the end of a key lock-in period, which has now allowed a large number of shares to be traded freely in the market.
With the lock-in expiry, nearly 25% of the company’s total shares—worth over ₹17,000 crore—have become available for trading. This sudden increase in supply has made investors cautious, as it could lead to selling by early investors and large shareholders.
Even though not all shareholders may sell immediately, the possibility itself has affected market sentiment. As a result, the stock price slipped as investors reacted to the increased supply of shares.
Lock-in periods are common after a company goes public. During this time, certain investors are restricted from selling their shares. Once the period ends, those shares can be traded, often leading to short-term ups and downs in stock prices.
Despite the recent dip, the company’s overall business performance remains strong. Bajaj Housing Finance has shown steady growth in its loan business and continues to expand its presence in the housing finance sector.
However, some analysts believe the stock is priced on the higher side compared to others in the same industry, which is adding to investor caution.
Another point of attention is the promoter stake. The promoters still hold a significant share in the company, and any future stake sale to meet regulatory norms could further influence the stock.
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