Groww shares fall 4% ahead of shareholder lock-in ending on Wednesday

Shares of Billionbrains Garage Ventures, the parent company of discount brokerage platform Groww, declined as much as 4% on Tuesday, December 9.

Groww shares remain up 47% from their issue price of ₹100. The stock now carries a market capitalisation of ₹90,814 crore.

Tuesday's session saw a trading volume of 2.95 crore shares at an average price of ₹146.77.

A key date for the stock is December 10, when Groww's one-month shareholder lock-in period ends.

According to Nuvama Alternative and Quantitative Research, about 14.92 crore shares, roughly 2% of the company's outstanding equity, will become eligible for trading once the lock-in expires.

The note clarifies that this does not imply these shares will be sold immediately; they simply become available for trade.

Market expert Deven Choksey, MD of DRChoksey Finserv, remains cautious on the counter. While acknowledging the business strength and the surge in retail participation, with nearly one lakh new demat accounts added daily, he believes the valuation has run ahead of fundamentals.

With the market already pricing in earnings projections as far ahead as FY28, he prefers to stay on the sidelines, citing that the stock's valuation "speaks everything."

Groww listed recently at a 12% premium to its issue price and closed its debut day with a 30% gain.

The three-day IPO of Groww was subscribed 17.6 times the total number of shares on offer. Investors placed bids for 641 crore shares, compared to the 36.47 crore shares that were on offer. The portion reserved for institutional investors was subscribed 22 times, while that for non-institutional and retail investors was subscribed 14 times and 9 times respectively.

Shares of Billionbrains Garage Ventures are trading 3.19% lower at ₹146.81.