Groww Shares Fall 5% as IPO Lock-In Ends; Stock Now 26% Below Recent Highs

Shares of Groww's parent company fell 5% after its one-month IPO lock-in period expired, allowing pre-IPO investors to sell their holdings. This event released 14.92 crore shares, increasing supply and causing short-term price pressure.

Shares of Billionbrains Garage Ventures, the parent company of popular investing platform Groww, on Wednesday (December 10) slipped 5% after the expiry of its one-month IPO lock-in period triggered a surge in share supply. The stock hit a day’s low of Rs 142 on the NSE, extending its recent downward trend.

Why Groww Shares Dropped Today

According to Nuvama Alternative and Quantitative Research, nearly 14.92 crore shares, or 2% of Groww’s total equity, became free for trading today. These belonged to pre-IPO investors who were restricted from selling their holdings for one month after listing.

With the restriction lifting, a wave of potential selling entered the secondary market, a common reason for short-term price pressure after IPOs.

What Is an IPO Lock-In Period?

A lock-in period prevents certain shareholders, promoters, employees, and early investors — from selling their shares immediately after an IPO.

The goal is to:

• Stabilise the newly listed stock
• Prevent sharp volatility
• Boost investor confidence in the early days of trading

But once the lock-in ends, many holders take the opportunity to book profits, often leading to a temporary supply-demand imbalance.

Groww’s IPO Journey: From Blockbuster Debut to Sharp Correction

Groww made a strong debut on October 12, listing at Rs 131.3, a 31% premium to its issue price of Rs 100.

The stock continued its winning streak, hitting Rs 193.80 within just five sessions, nearly doubling investors’ wealth and becoming one of 2025’s strongest mainboard IPO performers.

However, the rally cooled in recent sessions as investors began locking in gains. The stock has now:

• Fallen 26% from its recent highs
• But still remains 42% above its issue price

Strong IPO Demand but Post-Listing Volatility

Groww’s Rs 6,632 crore IPO, open from November 4 to 7, saw robust participation and was subscribed 17.05 times, driven largely by institutional investors.