Groww shares may list at a premium over IPO price; Check latest GMP trends

Shares of Billionbrains Garage Ventures Ltd., the parent company of fintech platform Groww, are expected to list with up to a 10% premium over their IPO price on Wednesday, November 12.

Reports from the unlisted market indicate that Groww shares are trading at around a 5% premium to their issue price of ₹100 per share, implying a grey market premium (GMP) of ₹5. However, these are unofficial and speculative indicators, and the actual listing price could differ from what the GMP suggests.

On listing day, Groww is expected to debut with a 5-10% gain, driven by positive market sentiment, though recent weak listings such as Lenskart and Orkla could limit exuberance, said Prashanth Tapse of Mehta Equities.

Tapse adviced that investors who received allotments should hold through listing, while new investors can consider entering post-listing if valuations remain reasonable and business momentum continues, particularly on post-listing dips as a potential entry opportunity.

The ₹6,632-crore IPO of the Bengaluru-based stockbroking firm received a robust response, subscribing 17.6 times overall.

Subscription came from institutional investors, for whom majority of the IPO was reserved for (75%). The institutional portion was subscribed 22 times, while the non-institutional portion saw subscription of 14.2 times the total number of shares on offer. Retail investors, for whom only 10% of the IPO was reserved for, saw bids that were 9.4 times the total number of shares on offer.

The issue drew strong interest due to the platform's high brand recall and favourable structural tailwinds from India's financialisation trend, said Shivani Nyati of Swastika Investmart.

However, Nyati mentioned that valuations appear steep compared to traditional brokerages, driven by expectations of high future growth. Investors allotted shares may book partial gains if the listing premium is significant, while medium-term investors should monitor execution, monetisation, and profitability before making fresh commitments.

She added that sustained returns will depend on Groww's ability to broaden its product offerings and build earnings visibility at scale.

Before the issue opened, Groww allotted 29.84 crore shares to more than 100 anchor investors at ₹100 per share, raising ₹2,984 crore. The IPO comprised a fresh issue of equity along with an offer for sale (OFS) by existing shareholders.

At the upper end of the price band, Groww is valued at nearly ₹62,000 crore, making it more valuable than peers such as Angel One, Motilal Oswal Financial Services, 360 ONE WAM, and Nuvama Wealth Management.

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