In a much-anticipated event that brought cheer to investors, shares of Groww, operated by Billionbrains Garage Ventures, made a spectacular debut on Dalal Street this Wednesday, November 12. The listing significantly outperformed subdued grey market forecasts, providing a welcome respite after a series of disappointing IPOs from companies like Lenskart Solutions, Studds, and Orkla India.
A Strong Market Entry
The stock opened with robust gains on both major exchanges. On the BSE, Groww shares commenced trading at ₹114, marking a healthy premium of ₹14 or 14 per cent over its initial public offering (IPO) price of ₹100. Mirroring this positive sentiment on the NSE, the share price was listed at ₹112, a solid 12 per cent gain. This performance was particularly notable given that the grey market premium (GMP) earlier in the day was a mere ₹3 per share, hinting at a listing price of just ₹103.
The bullish trend continued into the afternoon session. By around 12:20 p.m., the stock was trading at an even higher ₹122 on both the BSE and NSE, cementing its successful entry into the public markets.
Expert Analysis: What Should Investors Do Next?
With such healthy listing gains, the burning question for both existing shareholders and potential new investors is about the next strategic move. Should one book profits, buy more, or stay away? Leading market analysts have weighed in with their perspectives.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, underscored the company's formidable long-term potential, rooted in its strong fundamentals. She highlighted Groww's market leadership in retail participation, capturing over 40 per cent share in NSE’s net active user additions. Its vast reach spans 98 per cent of India's pin codes, supported by exceptionally high organic user acquisition rates.
Furthermore, Srivastava pointed to the efficiency of the company's asset-light, technology-driven business model. This approach has led to significant improvements in profitability, with the adjusted cost-to-operate plummeting from 26.32 per cent of revenue in FY23 to 13.77 per cent in FY25. The company also boasts strong customer engagement with retention rates above 80% and a diversified portfolio offering everything from mutual funds and equities to US stocks and bonds.
"For long-term investors, Groww’s strategic roadmap—expanding through wealth management, asset management, and new products—positions it well to capture India’s underpenetrated investment market, expected to nearly double by FY30," Srivastava stated.
However, she also advised measured caution for short-term traders, citing risks such as overdependence on broking income (84.5% of FY25 revenue), regulatory changes, and market volatility. "Traders should consider partial profit booking. Long-term investors with a three to five-year horizon can consider accumulating on dips," she recommended.
A Balanced View from the Market
Shivani Nyati, Head of Wealth at Swastika Investmart, offered a similar tactical approach. She suggested that investors who were allotted shares could book partial profits and hold the remainder for the medium to long term, setting a stop loss at ₹80.
Nyati acknowledged the company's key strengths, including its low customer acquisition cost, high monthly active users, and consistent growth in Assets Under Management (AUM). However, she also warned that investors should remain cautious due to high valuation multiples, margin pressures, and ongoing regulatory risks inherent in the fintech and brokerage space.
The overall analyst sentiment, echoed by firms like Mater Capital Services, is that Groww, as India's largest and fastest-growing investment platform by active users, is strategically positioned to capitalize on the country's accelerating financial inclusion momentum with its customer-centric and technology-enabled model.
Disclaimer: This story is for educational purposes only. The views and recommendations are those of individual analysts. Investors are advised to consult certified experts before making any investment decisions.
