Urban Company shares jump 8%, snap five-session losing streak as shareholder lock-in period set to end

The shares of Urban Company jumped more than 8 percent on October 15. This comes a day before the one-month shareholder lock-in period comes to an end on October 16.

The shares have now snapped a five-session losing streak.

Urban Company shares: Bumper market debut

Urban Company shares had made a bumper market debut on September 17, listing at a premium of over 57 percent over the IPO price at Rs 162.25 per share on the NSE. The shares gained further to close 64 percent higher than its IPO price on its debut day.

The shares of the app-based beauty and home services platform continued to record strong gains for the next few sessions, rising around 24 percent in three sessions post debut to hit a high of Rs 201.18 per share on September 22. The shares of the company however sharply declined following that, dropping around 26 percent to hit a low of Rs 149.46 apiece on October 14.

At its low, the stock was down around 8 percent from its listing price of Rs 162.25 per share. It was however up more than 45 percent from its IPO price of Rs 103 apiece.

The one-month shareholder lock-in period for the stock comes to an end tomorrow, October 16. As many as 4.15 crore shares of Urban Company, amounting to 3 percent of its outstanding equity, will free up for trade once the shareholder lock-in period ends, CNBC-TV18 quoted Nuvama Alternative & Quantitative Research as saying.

It is important to be noted that the end of the shareholder lock-in period doesn’t mean that these shares will essentially be sold in the open market. This simply implies that the stock will be eligible for trade.

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