HDB Financial Services share price surged by 7% in Wednesday's trading session, as the lock-in period for specific shareholders concludes today, releasing approximately 23 million shares of the company for trading. This accounts for about 3% of the company's overall equity.
Conversely, shares of Sambhv Steel Tubes fell by nearly 6% due to the release of around 10 million shares, which also represents about 3% of the firm's total equity.
As per the company's red herring prospectus (RHP), half of the equity shares assigned to anchor investors within the anchor investor portion will be subject to a lock-in period of 90 days starting from the date of allotment, while the other half of the equity shares allocated to anchor investors in the same portion will be locked in for a period of 30 days from the date of allotment.
Experts state that lock-in periods are restrictions set over a specific duration that prevent certain shareholders, typically promoters, pre-IPO investors, or employees, from selling their shares after the company goes public.
This regulatory measure is designed to stop major stakeholders from unloading their shares immediately following the listing, thereby contributing to stability during the initial trading days.
Historically, the expiration of lock-in periods tends to attract the interest of investors, as the rise in freely tradable shares can influence the liquidity of the stock. Although the actual impact can differ based on overall market sentiment and factors unique to the company, such occurrences are monitored closely by market participants, particularly in the first few months of a newly listed company's trading period.
Q1 results
Earlier this month, HDB Financial Services announced a slight decrease in net profit for the first quarter of FY26, reporting a profit after tax of ₹568 crore. This reflects a 2% drop from ₹582 crore during the same quarter last year.
Nevertheless, the bank achieved a strong operational performance, with net interest income (NII) climbing 18% year-on-year (YoY) to ₹2,092 crore, supported by robust growth in advances and a general rise in interest-earning assets.
In the first quarter of FY26, Sambhv Steel Tubes' net profit rose by 34.89% year-over-year, amounting to Rs. 33.40 crore compared to Rs. 24.76 crore in the same quarter last year. Compared to the fourth quarter of FY25, the net profit jumped by 102.92%, up from Rs. 16.46 crore.
The company’s revenue from operations increased by 68.89% year-over-year, rising from ₹330.77 crore in Q1 FY25 to ₹558.63 crore in Q1 FY26, and saw a growth of 12.80% quarter-over-quarter from ₹495.26 crore in Q4 FY25. Additionally, the company's EBITDA grew by 58.04%, climbing from Rs. 46 crore in Q1 FY25 to ₹72.7 crore in Q1 FY26.
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