Groww IPO Makes Impressive Debut on Dalal Street

Groww shares made a strong debut on the stock market, listing at a 14% premium over the IPO price on the Bombay Stock Exchange (BSE). Shares of Billionbrains Garage Ventures, the parent company of leading stockbroking platform Groww, opened at ₹114 per share against the issue price of ₹100.

On the National Stock Exchange (NSE), Groww shares listed at ₹112 apiece, reflecting a 12% premium. At the time of listing, the company’s market capitalisation stood at ₹69,144 crore, marking a robust start for one of India’s most anticipated IPOs of the year.

Listing Premium Beats Grey Market Expectations

The Groww IPO listing surpassed market expectations. Before the debut, unlisted shares of Groww were trading at just 5% premium in the grey market, according to data from Investorgain. This indicates that the stock performed far better on listing day than traders anticipated.

It’s worth noting that the grey market premium (GMP) had fallen from nearly 17% before the IPO opened for bidding, showing a cautious sentiment among investors initially. However, the strong debut suggests that investor confidence in Groww remains intact, driven by the platform’s growing influence in India’s digital investing ecosystem.

“Groww made a good IPO debut, reflecting healthy investor confidence driven by strong brand recall and rapid user growth in the Indian digital investing ecosystem,” said Shivani Nyati of Swastika Investmart.

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Strong Subscription and Investor Interest

The ₹6,632-crore Groww IPO witnessed robust investor participation during its three-day bidding window from November 4 to November 7. The issue was subscribed nearly 18 times, underscoring strong demand across investor categories.

The IPO consisted of a fresh issue worth ₹1,060 crore and an offer-for-sale (OFS) of 55.72 crore shares valued at ₹5,572.30 crore. The issue was priced between ₹95 and ₹100 per share.

Groww is backed by leading global investors such as Peak XV Partners, YC Holdings, Tiger Global Management, and Sequoia Capital. Retail investors could bid for a minimum of 150 shares, translating to an investment of around ₹15,000 at the upper price band.

Brokerages’ Views on Groww IPO

Brokerages maintained a positive yet cautious outlook on the Groww IPO listing.

• Master Capital Services recommended subscribing for the long term, noting that “India’s investment and wealth management industry is undergoing a major transformation driven by digital-first platforms.”

• The brokerage added that Groww, as India’s largest and fastest-growing investment platform by active clients (12.6 million on NSE), is well-positioned to benefit from the growing digital investing trend.

• However, Angel One held a ‘Neutral’ rating for long-term investors, stating that the post-issue P/E of 40.79x at the upper price band appeared slightly expensive compared to peers.

Key Takeaways

• Groww shares are listed at ₹114 on BSE, a 14% premium over the IPO price.

• Market capitalisation at debut: ₹69,144 crore.

• IPO size: ₹6,632.3 crore (Fresh issue + OFS).

• Subscription: Nearly 18 times the offer size.

• Grey market premium: 5% before listing, but the actual listing premium 14%.

Conclusion

The strong debut of Groww shares showcases the growing appetite for digital-first financial platforms in India. Despite a modest grey market prediction, Groww’s successful listing highlights the strength of investor belief in its business model and growth trajectory.

As India’s investing ecosystem continues to digitize, Groww’s technology-led and customer-centric approach positions it firmly at the forefront of the next wave of retail investment growth.

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