Shares of Billionbrains Garage Ventures, the parent company of online trading platform Groww, extended their decline on Thursday, 20 November, falling another 8 per cent after hitting a 10 per cent lower circuit in the previous session.
This marks the first significant pullback since the company’s stellar five-day post-listing rally.
Groww’s stock had surged nearly 90 per cent above its IPO price of Rs 100 before sentiment reversed on Wednesday. At the close of that session, sell orders for 1.6 crore shares remained pending at the NSE lower circuit price.
The stock continued to face pressure on Thursday, trading 7 per cent lower at Rs 157.63, with 2.5 crore shares worth Rs 400 crore changing hands within the opening minutes. The price has now slipped 18 per cent from Tuesday’s intraday high of Rs 193.
The next key trigger for investors will be Groww’s first post-listing quarterly results, scheduled to be released on Friday, 21 November.
A second major event looms on 10 December, when the one-month shareholder lock-in expires. According to Nuvama Alternative and Quantitative Research, 149.2 million shares, representing 2 per cent of total equity, will become eligible for trading once the lock-in lifts.
Despite Thursday’s decline, Groww remains substantially above its IPO price, though volatility is expected to stay elevated in the near term. |
