- Billionbrains Garage Ventures share price dropped after six-day gain streak since Nov 12 listing
- The stock surged 89% from issue price but hit a 10% lower circuit at Rs 169.89 on Wednesday
- IPO raised Rs 6,632.3 crore, backed by Satya Nadella, to fund margin trading and wealth management
Groww's parent, Billionbrains Garage Ventures Ltd. share price snapped its six-day gaining streak on Wednesday. The stock has been on gaining spree since it was listed on Nov 12.
Billionbrains Garage Ventures had round 30,84,721 shares in auction on Tuesday. Even, short sellers were getting trapped here.
The discount broker's share price swelled 89% compared to issue price of Rs
The daily average volume of Groww was at 51.3 crore. The total delivery volumes so far 61 crore shares versus 66 crore shares offered in the initial public offer. This implied that nearly all freely traded shares have changed hands multiple times.
Billionbrains Garage Ventures, backed by Microsoft Chief Executive Officer Satya Nadella, will use funds raised in the IPO fresh issue to expand margin trading, unsecured lending, wealth management, and possibly inorganic growth, as per offer documents. The IPO is structured as a mix of a fresh issue and an offer for sale by existing shareholders.
Groww's Billionbrains Garage Ventures share price hit a 10% lower circuit and fell to Rs 169.89 apiece. It remained locked in the lower circuit as of 10:15 a.m., compared to 0.17% advance in the NSE Nifty 50 index.
The stock advanced 29.3% since its listing. Total traded volume so far in the day stood at 1.2 times its 30-day average. The relative strength index was at 169.89.
Discount stockbroker Groww-parent Billionbrains Garage Ventures Ltd. listed on the BSE, the stock debuted at Rs 114, a 14% premium over its issue price of Rs 100 apiece.
The Groww IPO was subscribed 1.85 times on the final day of bidding. The price band for the offering was fixed between Rs 95 and Rs 100 per share, with an issue size totaling Rs 6,632.3 crore. The IPO had garnered a little over Rs 2,984 crore from anchor investors on Monday, including Abu Dhabi Investment Authority and the Government of Singapore.
Nuvama calls Groww a “leader among retail brokers” and says its tech platform and user experience are key strengths. Arihant Capital recommends “Subscribe for listing gains”, saying its scalable model, high retention, and low costs make it a long-term winner. While Anand Rathi is also positive but calls it “fully priced”, advising “Subscribe – Long Term”.
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