Groww Shares Slip 5% Ahead of Lock-In Expiry Even as Stock Holds 44% Gains Over IPO Price
Shares of Billionbrains Garage Ventures, the parent company of online investment platform Groww, declined nearly 5% on December 9, a day before the one-month lock-in period for certain shareholders is set to expire. The pullback in the Groww share price comes after two consecutive sessions of gains and has triggered renewed investor attention as additional equity becomes eligible for trading.
Market Nervousness Builds as Lock-In Expiry Nears
Groww shares fell to ₹144.20 apiece, reversing the short-term positive momentum the stock had seen since early December. Despite the dip, the stock remains significantly above its ₹100 IPO price, holding on to a strong 44% post-listing premium.
According to Nuvama Alternative and Quantitative Research, about 14.92 crore shares, accounting for approximately 2% of Groww’s outstanding equity, will be unlocked and become eligible for trading on December 10. At Monday’s previous closing price of ₹151.64, the value of the unlocked shares amounts to more than ₹2,262 crore.
Analysts clarified that the expiry of the lock-in period does not necessarily mean an immediate selloff. Instead, it simply allows existing shareholders—often early investors, employees, and pre-IPO holders—to trade their shares freely. Still, markets often turn cautious ahead of such events, as liquidity overhang can temporarily pressure stock prices.
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A Strong Market Debut Followed by Sharp Swings
Groww made its public market debut on November 12, listing at ₹112 per share on the NSE, a 12% premium over its issue price. Investor interest was strong in the opening sessions, with the stock surging almost 94% in just five trading days to hit a record high of ₹193.80 on November 18.
However, the rally cooled just as quickly. Since its peak, the Groww share price has corrected nearly 26%, reflecting profit-booking, valuation concerns, and the anticipation of the lock-in expiry. Even after this correction, the stock continues to outperform its IPO valuation substantially, up 44% from issue price and 29% above listing price.
Market experts say the volatility reflects a natural price discovery phase for newly listed digital-first financial companies, particularly those operating in businesses sensitive to market cycles and investor flows.
Groww’s Q2 FY26 Results Show Mixed Trend
Adding to the evolving narrative around the stock, Groww’s Q2 FY26 financial performance, announced on November 21, offered a mixed picture.
The company reported a consolidated net profit of ₹471.4 crore, marking a 12% year-on-year growth compared to the ₹420.16 crore profit in the second quarter of FY25. The profitability momentum suggests that the company continues to consolidate its leadership position in India’s retail investing ecosystem.
However, revenue from operations declined 9.5% YoY, falling to ₹1,018.7 crore in Q2 FY26, from ₹1,125.39 crore in Q2 FY25. The decline was attributed to lower trading activity and moderation in customer acquisition expenses, reflecting changing retail investor behaviour amid fluctuating market conditions.
Analysts say the revenue dip highlights the sensitivity of brokerage and fintech earnings to broader market activity, while the profit uptick indicates disciplined cost management, operational leverage, and diversified fee-based income sources.
Investor Sentiment: Balancing Short-Term Risk and Long-Term Potential
Ahead of the lock-in expiry, sentiment among investors remains mixed. On one hand, the Groww share price continues to trade well above its IPO valuation, indicating confidence in the company’s long-term growth narrative. On the other hand, the unlocking of a meaningful share base naturally raises concerns about short-term supply pressure.
Market watchers note that the expiry event provides early investors the opportunity to realise gains but may not necessarily trigger large-scale selling, especially if the company maintains its steady earnings trajectory. The broader investment community is also keenly watching whether Groww can sustain user growth and monetisation amid rising competition in India’s fintech and stockbroking landscape.
What Comes Next for Groww Shares?
With its IPO successfully completed and the lock-in expiry approaching, Groww now enters a critical phase of post-listing stability. Analysts believe that the stock’s medium-term direction will depend on three key factors:
How the market absorbs the unlocked shares
Momentum in customer activity and account additions
Consistency in earnings performance against volatile market cycles
The company’s ability to maintain profitability while navigating shifting investor sentiment will be central to its trajectory in FY26 and beyond.
For now, while the stock remains off its recent highs, it continues to outperform its issue price comfortably—underscoring investor appetite for emerging digital financial platforms.
