NSE data released on Tuesday revealed that more than 30 lakh shares of Groww-backed Billionbrain Garage Ventures were pushed into the auction window, an unusually large quantity that immediately caught the attention of market watchers. Analysts noted that the scale of this spillover highlighted how aggressively short sellers had misread the stock’s continued surge after its market debut.
According to analysts, a section of traders assumed the stock’s sharp post-listing rise would stall quickly. Expecting a pullback, many executed intraday short sales, offloading shares they did not actually own, anticipating they could repurchase them at lower prices before market close. Instead of dipping, the stock extended its upward momentum. As a result, a large group of short sellers found themselves unable to secure shares for delivery, pushing an unprecedented volume into the auction segment.

Since its listing on November 12, Billionbrain Garage Ventures has surged nearly 90 per cent from its issue price of Rs 100 per share in just four sessions. Its market capitalisation has now crossed Rs 1.17 lakh crore, surpassing BSE Ltd at around Rs 1.15 lakh crore. The company’s valuation has also jumped ahead of several prominent Nifty-listed firms, including Tata Consumer Products, Max Healthcare Institute, Apollo Hospitals Enterprise, and Dr Reddy’s Laboratories.

Market participants say this intense demand has contributed to the short squeeze now underway. Limited delivery availability and intraday shorts being forced into penalties have only amplified upward pressure on the stock.

Rajesh Palvia of Axis Securities explained the consequences for those who failed to deliver shares. He noted that the exchange typically levies a 20–25 per cent penalty during a close-out when sellers cannot provide delivery. A close-out ensures the buyer is compensated financially, usually at an amount 20–25 per cent higher than the traded price, while the seller absorbs the penalty. The buyer, however, does not receive the shares, as added in the report.
Even when shares are procured through the auction window, Palvia said the cost impact remains broadly the same. Buyers expecting delivery instead receive the close-out amount. “Someone who bought at Rs 100, for instance, would receive Rs 125, but no shares,” he said. He clarified that this mechanism is procedural and “does not influence the stock’s underlying fundamentals,” adding that the price will likely continue responding to market sentiment, states the report.
Analysts have labelled the situation a textbook short squeeze. With insufficient shares available for delivery and intraday shorts forced to pay penalties, upward price pressure has intensified.