Groww market cap falls below ₹1 lakh crore after stock falls 18% in two sessions

Shares of Billionbrains Garage Ventures Ltd., parent company of the trading platform Groww, are down another 8% on Thursday, November 20, extending its losses from a 10% lower circuit on Wednesday.

The stock had declined 10% on Wednesday after a five-day post-listing rally took the stock 90% above its issue price of ₹100 per share. With today's fall, Groww's market capitalisation has declined below the ₹1 lakh crore mark, having shed nearly ₹20,000 crore in the two-day fall.

As of Wednesday's close, there were pending orders for at least 1.6 crore shares of Groww on the NSE at the lower circuit price.

The next major trigger for Groww is on Friday, November 21, when the company will be disclosing its results for the quarter, which will be the first for the company after its listing last week.

Following its results, the other major trigger for Groww will come up on December 10, when its one-month shareholder lock-in will come to an end.

According to Nuvama Alternative and Quantitative Research, as many as 149.2 million shares of the company, or 2% of the outstanding equity will become eligible to be traded once the lock-in ends.

With this fall, the stock is down 18% from the intraday high of Tuesday's session, which was ₹193 per share.

Shares of Groww are trading 7% lower on Thursday at ₹157.63. 2.5 crore shares of the company worth ₹400 crore have already been traded in the first few minutes of trade.

Also Read: Groww Explained: From valuations to projections, here's what numbers tell us