Urban Company shares slip amid lock-in expiry; what analysts say

Shares of Urban Company Ltd declined in Tuesday's trade after the expiry of the six-month shareholder lock-in period. The stock fell 5.34 per cent to touch a day's low of Rs 107.30. At last check, it was trading 2.87 per cent lower at Rs 110.10, and has dropped 34.09 per cent over the past six months.

Around 94.1 crore shares became eligible for trading as the lock-in period ended. According to Nuvama Alternative & Quantitative Research, these shares account for nearly 66 per cent of the company's outstanding equity.

It must be noted that the end of the shareholder lock-in does not imply that all the shares will be sold in the open market; they only become eligible for trading.

As per the December quarter shareholding pattern, promoters held a 20.29 per cent stake in Urban Company, marginally lower than 20.43 per cent in the previous quarter.

From a technical perspective, support on the counter is seen around Rs 106, while the Rs 115–130 range could act as resistance.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted, "Urban Company has been into secular downtrend, hovering below all its significant EMAs on daily charts. The structure remains bleak until the cycle of 'lower lows – lower highs' is negated. On the levels front, Rs 125-130 is supposed to act as a crucial hurdle, and any decisive breakthrough could only instate buying emergence in the coming future."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, noted, "Support is seen at Rs 106, while resistance is placed at Rs 115. A decisive move above Rs 115 could push the stock towards Rs 120, with the expected short-term trading range pegged between Rs 106 and Rs 120."