CarTrade Tech shares declined after opening slightly in the green on Tuesday as the stock came under pressure after the one-year lock-in period for the pre-IPO investors ended.
The stock was trading 0.57 percent lower at Rs 639 per share on BSE at the time of writing. On Monday, the stock hit an intra-day low of Rs 595, before recovering and closing 0.7 percent higher.
According to the norms, the equity share capital held by a company — that does not have promoters — is locked for one year from the date of allotment of shares. This effectively means the shareholders cannot sell any equity during the stated period.
As CarTrade Tech's lock-in period ended on Monday, the shareholders, who were unable to sell the shares for a year, are now free to exit the stock. These investors held around 52 percent or 2.66 crore shares of CarTrade Tech's equity shares.
CarTrade Tech made its market debut on August 20, 2021, with a minor discount. However, the stock has been nosediving since then.
The stock has fallen 6.94 percent in the last one month while it is down 24 percent so far this year. In the last 12 months, the stock has fallen nearly 60 percent, underperforming the Sensex by 64.81 percent.
Last month, Zomato witnessed a heavy sell-off after its one-year lock-in period of pre-IPO investors ended on July 23. The stock hit a fresh low of Rs 40.60 on NSE after falling over 20 percent in two sessions.
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