Groww Stock Down 6%: Bears React Ahead of Massive Pre-IPO Share Release

Shares of Groww (Billionbrains Garage Venture Ltd.) are being sold by investors on Monday ahead of the pre-IPO lock-in expiry. The stock has fallen as low as 6% to Rs 192.55 apiece on the NSE.

The Securities and Exchange Board of India mandates a minimum of 20% of post-issue promoter capital lock-in for 18 months, starting from the date of allotment or trading approval.

In Groww's case around 400 crore shares, accounting for nearly 65% of pre-IPO shareholder holdings will be released. Of this, approximately 7% is held by promoters and the promoter group.

While for promoters capital is locked for 18 months, SEBI mandates a six-month lock-in period for non-promoter pre-IPO shareholders after a company's stock market listing.

The slated release of 400 crore shares that are valued at roughly Rs 80,000 crore, have heightened volatility in the stock.

Groww's shares traded 5.6% lower at Rs 193.58 apiece as of 3:18 p.m., this compared to a 1.5% decline in the Nifty index ahead of the market closing bell.

The scrip has risen nearly 24% year-to-date after its listing. Groww's share listed at a premium of 12% to 14% from the Rs 100 issue price at Rs 112 on the NSE and Rs 114 on the BSE.

Shareholding Pattern

Mutual funds own around 5.25% in Groww, though the lock-in period for these investors ended in February, three months after the IPO.

Foreign investors -primarily private equity and venture capital firms that backed the company before its public listing -collectively hold nearly 58% of the company, as of March 31, 2026, as per shareholding pattern data on NSE.

Groww Q4FY26

The stock broking platform reported a strong consolidated performance for the March quarter, with revenue rising 22% quarter-on-quarter to Rs 1,536 crore compared with Rs 1,261 crore in the previous quarter.

Net profit also saw healthy growth, climbing 26% QoQ to Rs 686 crore from Rs 547 crore. The sequential improvement reflects sustained momentum in the company's core businesses, supported by higher user activity and operating leverage.