Shares of CarTrade Tech fell after a modest open on Tuesday as the stock came under pressure after a one-year lock-in for pre-IPO investors ended.

At the time of writing, the stock was trading 0.57% lower at Rs 639 per share on the BSE. The stock hit an intraday low of Rs 595 on Monday before recovering and closing 0.7% higher.

According to the regulations, the share capital held by companies without promoters is locked for one year from the date of allotment. This effectively means that shareholders cannot sell equity within the stipulated period.

With CarTrade Tech’s lockup period ending Monday, shareholders who could not sell their shares for a year are now free to exit their shares. These investors own about 52% or 2.66 crore shares of CarTrade Tech.

CarTrade Tech will be available at a small discount on August 20, 2021. Since then, however, the stock has plummeted.

The stock has lost 6.94% in the past month and is down 24% this year. The stock is down nearly 60% over the past 12 months, underperforming Sensex by 64.81%. Last month, Zomato experienced a massive sell-off after ending a year-long pre-IPO investor lock-in on July 23. The stock hit a new low of Rs 40.60 on the NSE after falling more than 20% in two sessions.