Explained: Why are short-sellers getting trapped after the listing of startup IPOs?
Published on: Dec. 19, 2025, 9:55 a.m. | Source: The Economic Times
Short-sellers are getting trapped in recent Indian startup IPOs. Stocks like Meesho and Groww have seen sharp rallies after listing. This is driven by strong demand and very limited shares available for trading. When short-sellers cannot deliver shares on settlement day, they face forced losses. The exchange's auction mechanism forces them to buy shares at higher prices, increasing their pain.
