Shares of Billionbrains Garage Ventures Ltd., the parent company of Groww, slipped nearly 3% on Wednesday, December 10, primarily due to the expiry of a key shareholder lock-in period, which released a large volume of shares into the market.
Groww’s one-month shareholder lock-in ended today, making 149.2 million shares (around 2% of the company’s outstanding equity) eligible for trading. At Tuesday’s closing price, the newly freed-up shares are valued at ₹2,223 crore.
While the expiry of a lock-in does not automatically mean these shares will be sold, the sudden increase in free-float supply often raises concerns about potential selling pressure, prompting traders to turn cautious. This sentiment typically weighs on the stock price in the short term — which is exactly what played out today.
Market participants are also factoring in another 2% of equity scheduled to unlock on February 9, when the company’s three-month lock-in ends, adding to expectations of further supply in the coming weeks.
Groww’s stock, which had nearly doubled within days of its listing last month, has since pulled back from its post-listing high of ₹193.8. At ₹144.95, the shares are down nearly 26% from that peak, though still 45% above the IPO price of ₹100.
