India’s leading investment platform, Groww which is operated by Billionbrains Garage Ventures witnessed a 10% decline in its share value today. This sudden Groww share Price drop was triggered by a massive ‘block deal,’ where a large volume of shares was sold in the open market.
Why Groww share Price drop?
The primary reason behind this crash is the completion of the ‘lock-in period’ for early investors. Groww’s early investors have start selling their shares after the lock-in period ended. When too many shares enter the market at once, the price tends to fall.
Why it Matters?
This may be a concern for new investors, but experts say it’s simply supply pressure and not a problem with the company’s business. Retail investors should avoid making hasty decisions at this time.
What is Block deal?
A Block Deal is a single transaction between two parties usually institutional investors like mutual funds, hedge funds, or insurance companies involving a large number of shares.
In the Groww case, early backers or founders might want to cash out their investment after a “lock-in period” ends.
