Groww shares extend losses for second day ahead of Q2 earnings

Shares of Billionbrains Garage Ventures Ltd., the parent company of trading platform Groww, declined by another 9% on Thursday. This fall follows a 10% lower circuit on Wednesday, intensifying the selling pressure after a strong post-listing rally. As of Thursday morning, Groww shares slipped 9.42% to Rs 153.94. Around 132.5 lakh shares worth ₹208 crore changed hands in the initial minutes of trading. The stock closed at a lower circuit of 10% at Rs 169.94 in the previous session. 

The stock is down for two straight sessions today. Earlier, the five-day rally following Groww's listing last week had taken the stock up 90% above its issue price of ₹100 per share. .

Market participants are closely watching key upcoming events for Groww. The company is set to announce its first post-listing quarterly results on Friday, 21 November, a disclosure expected to provide insight into its financial performance.

Another anticipated event is scheduled for December 10, when the one-month shareholder lock-in concludes. This will result in additional shares becoming tradeable, potentially impacting stock price dynamics. As reported by Nuvama Alternative and Quantitative Research, as many as 149.2 million shares of the company, or 2% of the outstanding equity will become eligible to be traded once the lock-in ends.

The stock's fall has occurred despite significant volumes and has come sharply after the recent rally. Investors and analysts are awaiting the company's financial results and monitoring market sentiment ahead of the expiry of the lock-in period, which is expected to introduce new dynamics as additional shares enter the market.