Post by : Badri Ariffin

Shares of Billionbrains Garage Ventures Ltd., the parent company behind the trading platform Groww, experienced a sharp decline for the second day in a row on Thursday, November 20. The stock fell by 8%, adding to a loss that began when it hit a 10% lower circuit on Wednesday. From Tuesday’s intraday peak of ₹193, the stock has almost lost 18% in value.

Trading Limitations and Increased Volumes

Earlier this week, the price fluctuation limit for Groww shares was adjusted from 20% to 10%, reflecting heightened volatility following its market introduction. Regardless of the lower circuits, trading activity has been notably robust. On Tuesday alone, over 46 crore shares exchanged hands, but only 8.24 crore of those were designated for delivery.

A significant factor contributing to this instability was the auction of 30 lakh shares at NSE, prompted by the inability of traders who had shorted Groww to secure delivery. Wednesday's constrained trading reached ₹2,521 crore.

Pending Orders and Approaching Catalysts

As of Thursday, there were 1.65 crore pending sell orders in the market, with no pending buy orders noted, indicating pressure on the stock. Investors are closely watching Friday, November 21, when Groww will disclose its inaugural quarterly results following the IPO. Another pivotal date is December 10, marking the end of the one-month lock-in period for shareholders, which will allow 149.2 million shares (around 2% of total equity) to be traded.

Present Market Analysis

At the close on Thursday, Groww shares were down 6.4% at ₹158.99, reflecting the dual influence of profit-taking following the IPO and growing anticipation surrounding results and lock-in expiry. Analysts suggest that such post-listing volatility is common for high-profile IPOs, particularly within the rapidly evolving fintech sector.

#Global News