Groww Stock Plummets 18% as Trading Volumes Surge

The stock of Billionbrains Garage Ventures Ltd., which operates the trading platform Groww, saw a steep decline for the second consecutive day on Thursday, November 20. The share price plummeted by 8%, continuing losses after reaching a 10% lower circuit limit on Wednesday. From an intraday peak of ₹193 on Tuesday, the stock has depreciated nearly 18%.

Trading Limitations and Surge in Volume

Earlier this week, the trading price band for Groww shares was tightened from 20% to 10%, reflecting significant volatility following the listing. In spite of the lower circuit limits, trading activity has spiked unexpectedly. On Tuesday alone, more than 46 crore shares were traded, of which only 8.24 crore shares were marked for delivery.

A crucial factor contributing to this market upheaval was the auction of 30 lakh shares at NSE, arising from traders who shorted Groww and were unable to secure delivery. The total trading restriction on Wednesday amounted to ₹2,521 crore.

Pending Orders and Key Upcoming Events

As of Thursday, there were 1.65 crore shares in pending sell orders, with no buy orders reported, indicating increasing pressure on the stock. Investors are now focused on Friday, November 21, when Groww is scheduled to disclose its first quarterly results since the IPO. Another important date is December 10, marking the end of the one-month shareholder lock-in, which will allow for the trading of 149.2 million shares (about 2% of total equity).

Current Market Position

At the end of trading on Thursday, Groww shares were down 6.4% at ₹158.99, a decline that reflects profit-taking post-IPO alongside anticipation for upcoming results and the expiration of the lock-in period. Analysts indicate that this volatility following a listing is common for prominent IPOs, particularly within rapidly evolving fintech sectors.