Groww shares: 2 reasons why the stock fell 7% today; block deal a trigger

Billionbrains Garage Ventures Ltd (Groww) saw its shares tumble 7 per cent in Tuesday's trade, adding to a 5.54 per cent decline on Monday and taking its cumulative loss to 14.61 per cent over the past five trading sessions. The fresh selloff on the counter was seen as Rs 4,750 crore worth block deals were anticipated on the counter today. A total of 418.19 crore Groww shares, representing 68 per cent of its outstanding equity, became eligible for trading from Tuesday following the IPO lock-in expiry. 

Within the first 10 minutes into trading, Groww saw 38,83,94,451 shares worth Rs 7,022 crore changed hands. The stock hit a low of Rs 180 apiece on NSE today, down 6.98 per cent over Monday's closing price. 

As per sources investors namely Peak XV (Peak XV Partners Investments VI-1), Sequoia (Sequoia Capital Global Growth Fund III - US/India Annex Fund), Y Combinator (YC Holdings II, LLC) and Ribbit (Ribbit Capital V LP, Ribbit Cayman GW Holdings V, Ltd and GW-E Ribbit Opportunity V, LLC) launched block deal, wherein the selling shareholders were likely to offload 26.84 crore shares worth Rs 4,750.68 crore at around Rs 177 apiece.

According to sources, the shares on offer accounted for 4.3 per cent of the total outstanding equity, with the deal likely to be executed at an 8.5 per cent discount to the NSE's Monday closing price of Rs 193.52. Kotak Securities Limited was said to be the placement agent for Peak XV, Sequoia and Y Combinator. On the other hand, JP Morgan India Private Limited is the placement agent for Peak XV, Sequoia and Ribbit, as per Business Today sources. The transaction will be through vendor sale i.e. by way of one or more share sales on the screen-based trading platform of NSE.