Groww shares rebound 6% after block deal-led selloff eases

Shares of Groww rebounded sharply on Wednesday, May 13, recovering after a steep decline in the previous session triggered by a large block deal by early investors. The stock rose over 5% in intraday trade to hit a high of ₹193.70 on the NSE, after closing lower by more than 5% on Tuesday.

The recovery comes a day after nearly 5.01% equity, equivalent to around 30.91 crore shares worth approximately ₹5,637 crore, changed hands in a major block deal at ₹182.3 per share.

Market sources had earlier indicated that investors including Peak XV, Sequoia Capital, YC Holdings and Ribbit Capital were looking to pare stake in the company. The block deal size was also reportedly increased from around 4.3% initially to more than 5% before execution.

While the large transaction had weighed heavily on the stock in the previous session due to concerns around near-term supply pressure, Wednesday’s rebound suggests that investors may now be viewing the completion of the transaction positively. Market participants often track such block deals closely, as a completed stake sale can remove uncertainty related to further near-term supply in the market.

Analysts tracking the counter said the key positive after the deal execution is that the immediate overhang from large investor exits appears to have eased for now. Once sizeable institutional stake sales are absorbed by the market, stocks sometimes stabilise as selling pressure reduces.

The stock had opened higher on Wednesday and continued to gain momentum through the session amid improved buying interest. Traders also monitored volumes closely after Tuesday’s heavy activity.

Groww, one of India’s leading fintech and investment platforms, has expanded rapidly across equities, mutual funds and retail investing services over the last few years. The company has remained in focus amid rising investor interest in India’s digital financial services ecosystem and growing participation from retail investors in capital markets.