Groww's red hot surge cools as investors tap the brakes

Billionbrains Garage Ventures, the parent of Groww, saw its sharp post listing rally stall on Wednesday as the stock hit a 10% lower limit at Rs 169.94, snapping a five session winning streak.

The slide came after almost 94% surge over its IPO price of Rs 100, with the stock touching a record high of Rs 193.91 on Tuesday, 18 November 2025, and reaching a market capitalisation of about Rs 1.19 lakh crore.

The stocks recent surge was driven by a classic short squeeze. Many traders had short sold the shares expecting a pullback, but the price kept rising instead. With only about 7% of shares available for trading and the rest locked in from IPO investors, demand outstripped supply and forced short sellers to buy back shares at higher prices. As some were unable to deliver shares at settlement, more than 30 lakh shares reportedly moved into the auction window, adding to the squeeze.

Groww made a strong debut on 12 November 2025, listing at Rs 114, a 14% premium to the issue price. It closed Day 1 at Rs 130.94, reflecting a 30.93% gain. The IPO, priced between Rs 95 and 100, was subscribed 17.60 times and included a fresh issue of Rs 1,060 crore and an offer for sale of Rs 5,572.30 crore.

From the fresh capital, Groww plans to invest in cloud infrastructure, marketing, its NBFC arm Groww Creditserv Technology, and the margin trading facility of Groww Invest Tech, with the remainder earmarked for corporate purposes and acquisitions.

Founded in 2018, Groww has grown into a full scale digital investment platform offering stocks, mutual funds, derivatives and loans. It serves customers across 98% of Indian pin codes, manages 37 million demat accounts and oversees Rs 2.6 lakh crore in assets. For the six months ended 31 March 2025, the company reported a consolidated net profit of Rs 378.99 crore on operating income of Rs 904.40 crore.

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