Shares of Groww fell more than 5% in trade after a large block deal involving over 5% equity in the company hit the market.
According to market data, nearly 30.91 crore shares, representing around 5.01% equity, changed hands at an average price of ₹182.3 per share. The total transaction value is estimated at around ₹5,637 crore.
The stock was trading at ₹183.43, down 5.21%, after hitting an intraday low of ₹180 on the NSE.
Market sources had indicated late Sunday night that existing investors including Peak XV, Sequoia Capital, YC Holdings and Ribbit Capital were looking to pare stake in the company through block deals.
Sources further said the proposed block size was initially planned at around 4.3% equity but was later upsized to more than 5% on Monday morning amid strong investor demand.
The deal price of ₹182.3 per share was at a discount to Friday’s closing price of ₹193.52.
Groww has emerged as one of India’s largest retail broking and investment platforms, competing with players such as Zerodha, Angel One and Upstox. The company has witnessed rapid growth in recent years, driven by rising retail participation in equities and mutual funds.
The block transaction is being closely tracked by investors as it involves prominent global venture capital and institutional investors monetising part of their holdings after the company’s strong growth phase.
Large stake sales through block deals often lead to near-term pressure on stock prices due to supply overhang, even though such transactions may not necessarily reflect a change in the company’s long-term fundamentals.