Shares of Billionbrains Garage Ventures Ltd., the parent company of investing platform Groww, witnessed their first major setback on Wednesday, November 19. The Groww share price fell nearly 10%, hitting the lower circuit for the first time since its listing last week.
The stock had surged close to 90% above its IPO price of ₹100 by Tuesday’s close. However, Wednesday’s trade saw sharp selling pressure as the price band was revised lower to 10% from the earlier 20%.
High Volumes, Auction Activity Signal Market Stress
Trading volumes remained unusually high. More than 46 crore Groww shares exchanged hands on Tuesday, but only 8.24 crore were marked for delivery.
Reports also indicated that over 30 lakh shares entered the NSE auction window, as traders who shorted the stock in anticipation of a correction were unable to arrange shares for delivery. This forced their positions into the auction segment, adding to volatility.
Nov 21: First Earnings After Listing
The next major market trigger is Friday, November 21, when Groww will announce its first quarterly results after listing. Investors are keenly watching the earnings print, which could determine whether the recent rally was justified or overheated.
Dec 10: One-Month Lock-In Expiry Could Add Supply
Another critical date is December 10, when the company’s one-month shareholder lock-in ends.
According to Nuvama Alternative & Quantitative Research, nearly 149.2 million shares (about 2% of outstanding equity) will become eligible for trade after the lock-in expiry.
This additional supply could influence sentiment and further impact near-term price movement.
Stock at Lower Circuit
As of the latest trade, Groww shares were locked at ₹169.89, down 10% for the session, marking a dramatic shift from its strong debut performance.
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