Groww share price drops 5% as one-month IPO lock-in period ends today, stock down 26% from recent highs

Shares of Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, came under selling pressure in Wednesday's session, December 10, falling 5% to the day's low of ₹142 apiece on NSE as the supply of shares in the secondary market spiked with the expiration of the one-month shareholder lock-in period.

The one-month lock-in period for pre-IPO investors who had invested in the company before its public listing in October 2025 ended today, making up to 14.92 crore equity shares, or 2% of the company's outstanding equity, eligible for trading after the expiry of the lock-in period, CNBC-TV18 quoted Nuvama Alternative and Quantitative Research as saying.

A lock-in period in an Initial Public Offering (IPO) refers to a predetermined timeframe during which certain shareholders, often including the company, promoters, and pre-IPO investors, are restricted from selling their shares in the open market.

This restriction aims to provide stability to the newly listed company's stock price and boost investor confidence during the early stages of trading. Lock-in periods vary in duration, ranging from a few months to several years, depending on stock exchange regulations and the terms set by the company and its underwriters.

As the lock-in period expires, restricted shareholders become eligible to trade their shares in the secondary market, potentially increasing liquidity. However, there is a risk that some shareholders may immediately offload their holdings, adding downward pressure to the stock price.

Groww share price trend

The shares made a blockbuster debut on October 12, listing at ₹131.3 apiece, a 31% premium to the issue price of ₹100. Following a robust start, the shares maintained their winning momentum in the following sessions, reaching ₹193.80 apiece, almost doubling investors’ wealth in just five sessions after listing and emerging as one of the strongest post-listing performers among mainboard IPOs in 2025.

However, the rally fizzled out in recent sessions, as investors appeared to lock in gains, leading the stock to drop sharply. Yet, it remains up 42% over the issue price. From the recent highs, it has corrected 26%.

The ₹6,632 crore IPO, which was open for subscription from November 4 to November 7, received a healthy response from investors, being subscribed over 17.05 times, driven largely by strong demand from institutional investors.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.