Urban Company shares fall 4% as shareholder lock-in ends. Stock now 40% lower than peak

Shares of Urban Company fell nearly 6% intraday on Monday, hitting the day’s low of Rs 121.40 on the NSE as the three-month anchor lock-in ended today. This means that, according to Nuvama’s estimates, 41 million shares, accounting for 3% of the total shares outstanding, are now available for trading.The price action took place amid strong volumes, with 1.2 crore shares changing hands around the close. The stock finally ended at Rs 124, down Rs 4.84 or 3.76% from Friday’s closing price.

Although the shares are now eligible for sale, the onus is on the investors as to whether or not to sell them.

The Rs 1,900 crore initial public offering (IPO) hit the primary markets on September 10 and closed on September 12. The company had set the price range at Rs 98-Rs 103.

The stock had a strong debut and was listed at a premium of 56% and 58% on the BSE and NSE respectively. The offer prices were Rs 161 and Rs 162.25 respectively.

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Shares of Urban Company rose to a high of Rs 201.18 on the NSE over the next five trading sessions, and since then the stock has fallen. Since the price hit its three-month low today, it is now 40% lower than the peak, but still 20% above the issue price.

The home services platform had raised Rs 854 crore from major investors including Singaporean sovereign wealth fund GIC, Fidelity, Norges Bank and others.

Of their total anchor book, domestic mutual funds including SBI MF, ICICI Prudential, Nippon MF, HDFC MF and Aditya Birla Sun Life invested a total of Rs 316 crore in Urban Company.

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