Groww shares surge 40% since listing: Hold or book profits?
What's the story
Billionbrains Garage Ventures, the parent company of investment platform Groww, has witnessed a stellar performance in its newly listed shares. The stock hit an intraday high of ₹160 on the National Stock Exchange (NSE), marking a jump of up to 8% from its previous close. This translates to an impressive return of 60% over its initial public offering (IPO) price of ₹100 and a gain of 40% from its Bombay Stock Exchange (BSE) listing price of ₹114.
IPO details
Billionbrains's IPO saw massive interest from investors
The company's ₹6,632-crore IPO, which was open from November 4 to November 7, saw massive demand with a subscription rate of 17 times. The bulk of the demand came from qualified institutional buyers (QIBs). The retail portion was subscribed nine times while the non-institutional segment saw a subscription rate of 14 times.
Company evolution
Groww's rapid growth and market position
Founded in 2016 by former Flipkart executives, Groww has grown into a leading digital platform for stock broking, mutual funds, and derivatives. The company caters mainly to first-time retail investors. In the last three years alone, it has grown rapidly to become one of India's most downloaded investment apps with over 10 crore registered users and more than 60 lakh active investors.
Market analysis
Analyst insights on Groww's market performance
Shivani Nyati, Head of Wealth at Swastika Investmart, said Groww's strong debut at around ₹112—some 12% higher than its issue price (on NSE)—shows investor confidence in the brand and its rapid user growth. She highlighted positives like low customer acquisition costs, a large monthly active user base, strong conversions from mutual fund investors to equity traders, and steady AUM growth. However, she also cautioned against high valuation multiples and regulatory risks in fintech/broking sector.
Investment advice
Investment strategies for Groww's shares
Nyati advised investors who got allotment to book some profits while holding on to the rest for medium- to long-term gains with a stop-loss at ₹80. Mehta Equities' Prashanth Tapse echoed this view, advising allotted investors to stay invested for the long term due to Groww's structural strengths with a medium-term target of ₹125-130. For those who missed out on allotment, he suggested watching the stock post-listing and accumulating on meaningful dips.