Groww Shares Extend Slide For Second Day, Drop 9% Amid Sustained Selling Pressure
Shares of Billionbrains Garage Ventures Ltd., the parent company of the online investment platform Groww, continued their downward trajectory for the second consecutive day, falling as much as 9% on Thursday. This decline follows a period of strong gains since its listing earlier this month, with investors now seemingly engaging in profit-booking after the stock's impressive rally.
In early trading, the stock touched an intraday low of ₹154.10 on the National Stock Exchange (NSE), marking a 9.29% drop from the previous day's close. This also resulted in Groww's market capitalization temporarily dipping below the ₹1 lakh crore mark, reaching ₹97,431.70 crore. At approximately 10:29 AM IST, the shares were trading at ₹155.79, down by 8.30%.
The recent downturn comes after a five-day winning streak that saw Groww's shares surge nearly 90% above their initial public offering (IPO) price of ₹100 per share. On Wednesday, the stock had already experienced a sharp fall, hitting the 10% lower circuit on both the BSE and NSE. In response to the increased volatility, the exchanges have revised Groww's price band from 20% to 10%, limiting the stock's movement in a single session.
Several factors are contributing to the current selling pressure. After the shares rallied close to 94% from their issue price, profit-booking has emerged as a primary driver of the decline. Some analysts suggest that the stock's valuation had become stretched after the rapid post-listing surge, leading to concerns about sustainability. At the time of its IPO, Groww's implied P/E ratio was already higher than established competitors, and the recent run-up further widened this gap.
Another factor contributing to the volatility is Groww's low free float, with only about 7% of the company's shares available for trading. This limited supply can amplify price swings, as even relatively small buying or selling orders can have a significant impact. The low free float also contributed to a short squeeze in earlier sessions, where traders who had bet against the stock were forced to cover their positions, driving the price even higher.
Looking ahead, investors are focusing on two key events. First, Groww is scheduled to announce its quarterly results on Friday, November 21, which will be its first earnings report since listing. This report is expected to provide insights into the company's operational performance and future prospects. Second, the one-month lock-in period for pre-IPO shareholders is set to end on December 10, which could potentially lead to further selling pressure as these shareholders become free to sell their shares.
Despite the recent volatility, Groww remains a significant player in the Indian stockbroking industry. As of June 2025, it was the largest stockbroker in India, with over 12.6 million active clients and a market share exceeding 26%. The company's strong growth in active users and its expansion into new products and services have contributed to its success. However, analysts caution that the broking industry is highly competitive and regulated, which could make it difficult to sustain high valuations over the long term.
Investors are advised to carefully evaluate Groww's fundamentals, corporate governance, and valuations before making any investment decisions. The company's upcoming quarterly results and the end of the lock-in period could provide further clarity on its future performance.
