The share price of Billionbrains Garage Ventures, the parent company of online brokerage Groww, plunged 5% intra-day after a sizeable tranche of locked-in shares became eligible for trading. This is because the 1-month lock-in period is over today.
Nuvama on Groww
According to Nuvama Alternative & Quantitative Research, 149 million shares, or about 2% of Groww’s outstanding equity, came out of lock-in on December 10.
The brokerage added that the freed shares are worth a little over Rs 2,200 crore. While a lock-in expiry does not imply that all eligible shares will be sold, the increased tradable supply often weighs on sentiment, especially when a newly listed company is still in price-discovery mode.
The shares of the company made a stable debut on stock markets on November 12, listing with a premium of 12% over the IPO price at Rs 112 apiece on NSE. The stock then surged around 94% from its IPO price in just five sessions to hit a high of Rs 193.80 apiece on November 18. But that momentum cooled quickly. From its post-listing peak of about Rs 193, the stock has now corrected roughly 26%, though it continues to trade comfortably above the issue price. However, it is still up more than 43% from its IPO price of Rs 100, and around 28% from its listing price of Rs 112 on NSE. Its market capitalisation currently stands at over Rs 88,460 crore.
Groww Q2 Results
Groww posted a consolidated net profit of Rs 471.4 crore for the second quarter of FY26, the company said on November 21. Profit was up 12% from the Rs 420.16 crore it earned in the same quarter a year earlier.
Revenue from operations, however, moved lower. The firm reported Rs 1,018.7 crore in operating revenue for Q2 FY26, a 9.5% drop compared with Rs 1,125.39 crore in the year-ago period.
Lenskart’s 1-month lock-in period ended on December 8
This week saw the lock-in period expire for a few other newly listed tech and consumer internet spaces. On December 8, just two days before Groww’s expiry, Lenskart Solutions saw 41 million shares, also equivalent to 2% of its outstanding stock, come out of lock-in.
Market participants noted that back-to-back unlocks in high-profile digital-economy names have added to caution, with traders watching how each company absorbs the sudden increase in available float.
The December event is only the first leg for Groww. Nuvama’s schedule shows that another 149 million shares again amounting to about 2% of the company, will become free to trade on February 9, when the three-month shareholder lock-in expires.
