Groww Stock plunges: Stock hits lower circuit; auction & lock-in period impact Explained
After stupendous rise since its listing, Groww shares declined 10% and were locked in lower circuit on November 19, 2025. This significant decline was primarily due to over 3 million shares entering the auction window. Investors are now eyeing the results on November 21st and the end of the lock-in period on December 10th.
New Delhi: The shares of GROWW's parent company, 'Billionaires Garage Ventures Limited', which had registered an exponential jump since the listing last week, on Wednesday, registered a sharp decline. The stock, which rallied continuously for the last six days, not only took a U-turn today, as the stock lost 10% and got locked directly on the lower circuit.
As soon as the market opened on Wednesday, Groww shares witnessed selling pressure. The stock price fell by 10 percent and came down to Rs 169.89 at the time of writing thai article. This fall was so sharp that the stock got stuck in the 'lower circuit'. Lower circuit means that the stock cannot decline further and only sellers are present in the market and buyers disappear.
On Wednesday itself, the exchange also changed the 'circuit limit' of this stock. Earlier this limit was 20%, which has now been reduced to 10%. The direct effect of this will be that now this stock will not see fluctuations of more than 10% (bullish or bearish) within a day. This step is usually taken when there is a possibility of too much volatility (volatility) in a stock.
Why were 30 million Groww shares stuck?
According to a Moneycontrol report, about 3 million shares of Groww have gone into the auction window of NSE (NSE). Now the question arises, why did this happen?
Many traders in the stock market do 'short selling'. That is, they sell the stock first, hoping that when the price falls, they will buy it cheaply and level their position. It seems that many traders made short selling in the hope of falling growth, but when the time came to deliver, they could not arrange the shares. Simply put, they sold the goods they did not have and could not even buy on time. Therefore, it is now necessary to auction the shares to settle these deals, which has created an atmosphere of disturbance in the market.
All eyes are on 10th December
The existing shareholders and people planning to invest should keep a note of two dates in the calendar. The first date is 21st November, when the company will announce the results for the July-September quarter of the current financial year. This will be the company's first 'report card' after listing, which will reveal how much the company is actually earning.
According to market experts and brokerage firm Nuwama, the one-month 'lock-in period' of the company's shares will come to an end on December 10, 2025. As soon as this period ends, about 14.92 crore shares will be free for trading. This is about 2% of the company's total stake. When such a large number of shares come into the market, then if old investors start profiting (Profit Booking), then there may be huge pressure on the stock price.
IPO investors are still profitable
Despite all the bad news, it is a matter of relief that investors who got shares in the IPO are still making good profits. The company's IPO came at a price of Rs 100 and despite today's fall, the stock is trading at Rs 169.89 rupees. That means it is still about 70% above the IPO price.
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