After a blistering post-listing rally, shares of Billionbrains Garage Ventures (Groww) saw sharp profit-taking on Wednesday, sliding 10% to hit the lower circuit at ₹169.89 on the NSE.
The reversal follows a significant spike in auction market activity on Tuesday, when over 30 lakh shares were pushed into the settlement mechanism due to delivery shortfalls. The unusually high auction volume indicated that several traders who had short-sold the stock were unable to deliver shares amid tight supply conditions.
Groww has been one of the most actively traded new listings this month, gaining almost 90% over its issue price in four sessions. The surge was driven partly by short-covering as traders scrambled to close positions in a low free-float environment.
However, concerns around the company’s elevated valuation have begun to weigh on sentiment. At around 61 times earnings, Groww is trading at a substantial premium to long-established financial services firms.
The company has notified exchanges that it will declare its September quarter results on November 21.
