Shares of Billionbrains Garage Ventures Ltd., the parent company of online brokerage platform Groww, fell as much as 10% on Wednesday, November 19, marking the first decline in the stock’s six-day trading history after listing. The drop comes after a sharp post-IPO rally that saw the stock surge nearly 90% from its issue price of ₹100 per share.
The sell-off coincided with a revision in the stock’s price band, which was reduced from 20% to 10% for Wednesday’s session. The change narrowed the trading range for the day and heightened volatility as investors reacted to recent developments.
On Tuesday, Groww saw massive market participation, with over 46 crore shares traded. However, only about 8.24 crore shares were marked for delivery. According to Moneycontrol, more than 30 lakh shares moved into the NSE auction window after traders who had shorted the stock were unable to arrange delivery of the short-sold shares. This pushed the unsettled positions into the auction segment, indicating heavy speculative activity in the counter.
Another factor weighing on the stock today is the anticipation around key upcoming events. Groww will report its first quarterly results as a listed company on Friday, November 21, which investors expect to be a major trigger for the stock’s next move.
Beyond earnings, the more significant date for the company is December 10. On this day, Groww’s one-month shareholder lock-in will expire. According to Nuvama Alternative and Quantitative Research, nearly 149.2 million shares—equivalent to 2% of the company’s outstanding equity—will become freely tradeable once the lock-in ends. The potential increase in liquidity has raised concerns of additional supply hitting the market.
Together, these developments—delivery shortages, narrowed price band, upcoming results, and the December 10 lock-in expiry—have contributed to the stock’s first major correction since listing.
