Groww Shares Fall 10% After Sharp Post-Listing Rally

Groww-parent Billionbrains Garage Ventures—one of Dalal Street’s most-discussed new listings—finally saw its soaring momentum cool on Wednesday. After four consecutive sessions of massive gains, the stock slipped 10% in early trade, falling to ₹169.89 on the NSE around 9:50 am.

The correction follows a blistering Monday session where the stock surged 11% to ₹193.80, marking a staggering 94% rise from its IPO price of ₹100. Despite giving up some intraday gains, Groww closed significantly higher on Monday, capping one of the strongest debut rallies of the year.

???? What Triggered the Sudden Fall?

On Tuesday, the company informed the exchanges that:

• Its earnings call will be held on Friday, November 21, 2025 at 4 pm

• Its board meeting will also take place the same day to review unaudited standalone and consolidated results for the quarter and half-year ending September 30, 2025

But the real action wasn’t in corporate announcements — it was in the trading data.

???? 30 Lakh Shares Moved to the NSE Auction Window

Exchange data showed that over 30 lakh Groww shares entered the auction window on Tuesday — an unusually large figure.

Why does this matter?

The auction window (2 pm–2:45 pm) is used to resolve delivery failures, typically arising when short sellers don’t actually hold the shares they sell. If traders short-sell expecting a price drop — but the stock shoots up instead — they often fail to deliver shares by settlement time.

That’s exactly what analysts believe happened with Groww.

???? Massive Short Squeeze?

Market watchers say that:

• Many traders expected the post-IPO rally to cool quickly

• They short-sold Groww hoping to buy back at lower levels

• Instead, the stock’s relentless surge trapped them

• Delivery shortages forced a large number of trades into the auction window

This “short squeeze” reinforces that real buying demand has been extremely strong since the stock listed on November 12.

???? So Why Is the Stock Falling Today?

Wednesday’s 10% dip is likely driven by:

• Profit-booking after a near-vertical 90% rise in four sessions

• Cooling off after heightened volatility due to delivery failures

• Caution ahead of the results announcement on November 21

Even after today’s fall, Groww remains one of the best-performing IPO stocks of the year.

Investors are now watching whether the momentum can sustain or if the froth is beginning to thin.

Disclaimer: Expert views quoted are independent. Consult a licensed advisor before investing.