Groww Parent Company Billionbrains Garage Ventures Sees Stock Dip After Lock-In Period Ends

Stock Market Update: Billionbrains Garage Ventures

The stock price of Billionbrains Garage Ventures, the parent company of Groww, a popular stockbroking platform, fell by 5% to ₹142 per share on the National Stock Exchange (NSE) on Wednesday, December 10.

What Caused the Stock Price to Drop?

The decline in stock price is attributed to the expiration of the one-month lock-in period for pre-IPO investors. As a result, up to 14.92 crore equity shares, or 2% of the company's outstanding equity, became eligible for trading.

Understanding Lock-In Periods

A lock-in period is a predetermined timeframe during which certain shareholders, including the company, promoters, and pre-IPO investors, are restricted from selling their shares in the open market. This restriction helps provide stability to the newly listed company's stock price and boosts investor confidence.

Impact on Stock Price

When the lock-in period expires, restricted shareholders can trade their shares in the secondary market, increasing liquidity. However, this can also lead to downward pressure on the stock price if some shareholders decide to offload their holdings immediately.

Groww's Stock Price Trend

The shares of Groww made a strong debut on October 12, listing at ₹131.3 per share, a 31% premium to the issue price of ₹100. The stock maintained its momentum, reaching ₹193.80 per share, almost doubling investors' wealth in just five sessions after listing.

However, the rally ended, and the stock dropped sharply as investors locked in their gains. Despite this, the stock remains up 42% over the issue price, with a 26% correction from its recent highs.

IPO Performance

The ₹6,632 crore IPO, which was open for subscription from November 4 to November 7, received a healthy response from investors, with over 17.05 times subscription, driven largely by strong demand from institutional investors.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Key Takeaways:

• Billionbrains Garage Ventures' stock price fell by 5% after the lock-in period ended.
• The lock-in period expiration made up to 14.92 crore equity shares eligible for trading.
• Groww's stock price remains up 42% over the issue price despite a 26% correction from its recent highs.