Groww falls 7% as IPO lock-in expiry frees shares worth ₹81,000 crore for trading

Shares of Billionbrains Garage Ventures, the parent of investment platform Groww, fell as much as 7% on Tuesday amid heavy trading volumes following the expiry of the company’s six-month shareholder lock-in period today. The decline was further aggravated by reports of a large block deal by existing investors, including Peak XV Partners, Y Combinator and Ribbit Capital.

Triggered by heavy volume, Groww shares dropped 7% to hit an intraday low of ₹180.15 on the BSE. As many as 2.89 crore shares changed hands over the counter compared with the two-week average volume of 20.94 lakh shares.

The fintech stock opened 5% lower at ₹183.95 against the previous close of ₹193.70 on the BSE. In the final hour of trade, the largecap stock was trading 3.98% lower at ₹186, taking the company’s market capitalisation to around ₹1.16 lakh crore.

Shares of Groww, which debuted on November 12, 2025, continue to trade nearly 88% above their IPO price of ₹100 apiece. The stock touched a record high of ₹227 on April 29, while its listing-day low stood at ₹112.02. The stock has gained around 19% so far in calendar year 2026, although it has declined nearly 6% over the past one month.

Existing investors to offload ₹5,637 crore stake via block deals

According to reports, several marquee investors in Billionbrains Garage Ventures were looking to offload shares worth nearly ₹5,637 crore through a secondary stake sale. Among the key shareholders, Peak XV Partners holds around 16.88% stake in the company, followed by Y Combinator’s YC Holdings II with nearly 10.08%, Ribbit Capital with about 6.90%, and Sequoia Capital’s Global Growth Fund III with roughly 1.57%.

The proposed transaction reportedly involves the sale of around 30.91 crore shares, representing nearly 5.01% equity stake in the company, at a floor price of ₹182.30 per share. The floor price is about 5.9% lower than Monday’s closing price of ₹193.70 on the BSE.

The timing of the transaction coincides with the expiry of Groww’s six-month post-IPO lock-in period, which has unlocked a substantial portion of the company’s equity for trading.

According to estimates by Nuvama Alternative & Quantitative Research, nearly 418.2 crore shares worth around ₹81,000 crore (based on Monday’s closing level), representing about 68% of the company’s outstanding equity, have become eligible for trading following the lock-in expiry. However, the expiry does not necessarily imply immediate selling, but only allows eligible shareholders to trade their holdings.

For the quarter ended March 31, 2026, Groww reported a sharp 122% year-on-year jump in net profit to ₹686 crore, compared with ₹309 crore in the corresponding period last year. Revenue for the quarter rose 87.9% year-on-year to ₹1,505 crore from ₹801 crore a year earlier.

At the operating level, EBITDA surged 142% year-on-year to ₹938 crore from ₹388 crore in Q4 FY25, while EBITDA margins expanded to 62.35% from 48.46% a year ago.

For the full financial year FY26, Groww posted a net profit of ₹2,083 crore, up around 14% from ₹1,824 crore in FY25. Annual revenue rose to ₹4,645 crore compared with ₹3,902 crore in the previous fiscal.

The company’s balance sheet also strengthened significantly, with total assets rising to ₹1.85 lakh crore as of March 31, 2026, from ₹1 lakh crore a year earlier. Groww maintained a strong liquidity position, with cash and cash equivalents standing at ₹11,654 crore.

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