Stories
ESDS Software Shares Plummet 5% for Sixth Day Amid Lock-in Expiry and Weak Q1 Results
- •ESDS Software Solutions shares dropped 5% for the sixth consecutive session on Monday, October 5, due to the end of a shareholder lock-in period.
- •Approximately 2.5 million shares, representing 2.5% of the company's outstanding equity, became eligible for trade as the one-month lock-in expired.
- •The value of shares eligible for trade is estimated at ’358.5 crore based on last Thursday's closing price.
- •The stock, which listed at a 76% premium and initially quadrupled from its issue price, entered correction mode after disappointing Q1 results.
- •ESDS reported a 20% sequential decline in Q1 revenue and a 57% drop in profitability, with net profit significantly below analyst estimates.
Key Questions Answered
Shares of ESDS Software Solutions fell by 5% on Monday, October 5, as its one-month shareholder lock-in period officially ended. This event freed up 2.5 million shares, representing 2.5% of the company's outstanding equity, to become eligible for trading in the open market.
A total of 2.5 million shares, which amount to 2.5% of the company's outstanding equity, became free to trade following the conclusion of the one-month shareholder lock-in period. Based on the previous Thursday's closing price, these eligible shares are valued at ₹358.5 crore.
ESDS Software reported a sequential revenue decline of 20% and a profit drop of 57% for the June quarter. The net profit of ₹29 crore fell significantly short of brokerage estimates, causing the stock to correct sharply after hitting its post-listing high.
