Shares of Groww, PhysicsWallah and Tenneco Clean Air hit the news for the impressive listing gains it gave for the IPO subscribers. However, soon after, these stocks are again in the news. But this time for bleeding red.
What's causing the fall in share price?
All three stocks were listed on NSE as well as on BSE with tremendous listing gains. Stocks of Groww were listed at 12 per cent premium, PhysicsWallah at 33 per cent and Tenneco Clean Air at 27 per cent premium.
The Groww IPO Fiasco: Understanding Short Delivery and Why Traders Lost Crores
— Ankur Patel (@AnkurPatel59) November 19, 2025
Recently, many traders were hit with massive penalties - some losing lakhs of rupees - after the Groww IPO.
Over 30 lakh shares entered auction, and sellers were forced to pay up to 25% penalties.… https://t.co/D7D4uqsQkh pic.twitter.com/OH2OaN5SFV
As per analysts, profit booking, high valuations and market volatility are among some of the reasons behind the fall in the prices of these stocks.
Shares of Billionbrains Garage Ventures, the parent company of stock broking firm Groww, fell for the second day in a row, tumbling nearly 8 per cent. The stock fell 7.84 per cent to settle at Rs 156.62 on the BSE, and at the NSE, the stock fell by 7.75 per cent to Rs 156.71. According to Moneycontrol, in the case of PhysicsWallah, a market cap erosion of nearly Rs 12,000 crore has occurred since its debut on the stock market. On November 20, the shares closed at Rs 141.93. The 52-week high of the stock was Rs 161.99, and it touched a low of Rs 121.22.
Groww and PhysicsWallah, once listed, the stocks gave more than 40 per cent gains, which triggered the investors to book profits, which led to a market correction and selling pressure. High valuations of these stocks were also being observed by the market experts.
Experts noticed that extremely low free float, in the case of Groww, triiggered the stock to be susceptible to a 'short squeeze'. Why did this happen? Only 7 per cent of Groww's shares were available for trading initially. Due to this, short-sellers were forced to buy shares at higher prices, which became a reason for the rally in the share price. This was followed by a sharp correction after the buzz cooled down. Valuation concerns too are clogging the minds of investors.
Come November 21, Groww will disclose its quarterly results, which are crucial for the firm post-listing. Immediately after the results disclosure, the next important date for the firm is on December 10, when the one-month shareholder lock-in period will come to an end.
