Post by : Bianca
Haleem
Shares of Billionbrains Garage Ventures Ltd., parent company of the trading platform Groww, faced a significant decline for the second day on Thursday, November 20. The stock fell by 8%, deepening losses from a 10% lower circuit limit reached on Wednesday. Since the peak of ₹193 on Tuesday, the stock has seen a nearly 18% reduction in value.
Trading Limits and Volume Surge
Earlier this week, the price range for Groww shares was adjusted from 20% to 10%, indicating increased volatility post-listing. Despite the imposed limits, trading activity has surged. On Tuesday, over 46 crore shares changed hands, with only 8.24 crore shares recorded for delivery.
A pivotal reason for this market fluctuation was the auction of 30 lakh shares at NSE, triggered as traders who shorted Groww weren't able to secure delivery. The restricted trading on Wednesday reached ₹2,521 crore.
Pending Sell Orders and Market Triggers
As of Thursday, there were 1.65 crore shares in pending sell orders, with no pending buy orders reported, underscoring the stock's pressure. Investors are watching eagerly for Friday, November 21, when Groww will publish its inaugural quarterly results post-IPO. Another crucial date is December 10, marking the conclusion of the one-month shareholder lock-in, allowing for the trading of 149.2 million shares (about 2% of total equity).
Market Overview
By the end of Thursday’s session, Groww shares settled 6.4% lower at ₹158.99, influenced by profit-taking after the IPO and market anticipation ahead of the results and lock-in expiration. Analysts note that such volatility post-listing is common for prominent IPOs, particularly within the rapidly evolving fintech sector.
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