Shares of HDB Financial Services were trading marginally lower on Friday, January 2, after the company’s six-month shareholder lock-in period ended, making a large chunk of equity eligible for trading.
At around 9:47 am, HDB Financial Services was quoting at Rs 762.05, down Rs 2 or 0.26% on the NSE.
Lock-in expiry triggers supply overhang
According to Nuvama Alternative and Quantitative Research, nearly 481.5 million shares, or 58% of HDB Financial Services’ outstanding equity, became eligible to be traded from Friday’s session following the expiry of the lock-in period.
Based on Thursday’s closing price, the total value of these shares is estimated at around Rs 36,786 crore. While the expiry does not mean all these shares will be sold immediately, the sudden availability of a large equity pool often creates near-term supply overhang, weighing on stock performance.
Promoter and public shareholding details
As of the end of the September quarter, promoters held a 74.19% stake in HDB Financial Services. Among public shareholders, mutual funds owned about 10%, with Mirae Asset Mutual Fund, SBI Mutual Fund, Kotak Mutual Fund, and Nippon Life India Mutual Fund among the prominent investors.
Retail participation in the stock is also meaningful. More than 11.1 lakh retail shareholders, defined as investors with authorised share capital of up to Rs 2 lakh, collectively held a 7.7% stake in the company as of September 30, 2025.
Brokerages initiate coverage
Separately, HDB Financial Services has recently seen coverage initiation by multiple global brokerage firms. Morgan Stanley initiated coverage with an ‘Equalweight’ rating and a price target of Rs 780. UBS assigned a ‘Neutral’ rating with a target of Rs 790, while Goldman Sachs also rated the stock ‘Neutral’ with a price target of Rs 808.
Why the stock is under pressure today
Market participants are factoring in the technical impact of the lock-in expiry, rather than any change in fundamentals. The availability of a large number of shares for trading often leads to short-term caution among investors, even though actual selling may be staggered over time.
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