How New IPOs Like Groww Move So Fast and Fall So Quickly

Groww’s sharp rise and sudden 10 percent fall show how new IPOs often move up and down very quickly. After the stock jumped almost 90 percent in just a few days, many early investors decided to take their profits, which pulled the price down. The exchange also cut the circuit limit from 20 percent to 10 percent, so the fall looked sharper. This kind of volatility is normal because the market is still trying to find the right price for a newly listed company. The Groww IPO is a good example of how fast rallies in new stocks can also face quick corrections.