Why Are Groww Shares Falling Today? Billionbrains Stock Drops 4% Ahead of Key December 10 Trigger

Groww Share Price Today: Shares of Billionbrains Garage Ventures Limited, Groww, saw a sharp decline on Tuesday, December 9, ahead of the shareholders lock-in expiry date. Meanwhile, the overall market sentiment remained bearish amid the uncertainty of the India-US trade deal, the upcoming US Federal Reserve rate cut, and other factors.

Groww shares were trading 3.13% lower at Rs 147.2 per share on BSE with a market capitalisation of Rs 90,875.34 crore at 12:30 pm on Tuesday. The stock had dipped to an intraday high of Rs 152.30 per share and an intraday low of Rs 144.20 per share. Groww IPO was launched in October, and its one-month shareholder lock-in period will end on Wednesday.

Groww Share Price in Focus Ahead of Lock-In Expiry

Nearly 15 crore Groww shares will be available for trade on Wednesday, after the company's one-month shareholder lock-in period ends tomorrow. As per Nuvama Alternative and Quantitative Research, around 14.92 crore shares, equivalent to 2% of the company's outstanding equity, will become eligible for trading after the lock-in expiry.

Why Are Groww Shares Falling Today?

The sharp decline in the Groww share price has come as the overall market sentiment remained bearish on Tuesday. Nifty fell below the 25,700 mark, whereas Sensex crashed over 600 points during the trading session. However, the benchmark indices recovered from their intraday low mark later in the day.

The sharp decline is also a reflection of investors' cautiousness ahead of the shareholders' lock-in expiry date. However, the shareholders' lock-in expiry doesn't mean that the shares will be sold immediately in the market, but rather it means that the additional shares, expiring on Wednesday, will be available for trade from tomorrow.

Groww IPO

Groww shares have surged significantly since their stock market listing in November. The stock was listed with 12% gains, and zoomed over 100% from its listing price, followed by some corrections. Groww share price today is still hovering nearly 50% above its listing day price.

The IPO received bumper subscription, from anchor as well as retail investors. The Groww IPO was subscribed over 176% in the three day subscription period. It was subscribed over 943% in the retail investors category, 220% in the QIB category, and 142% in the NII category.

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