Groww shares made a strong debut on Dalal Street on Wednesday, November 12, exceeding grey market expectations and soothing investor nerves over the recent IPO frenzy following the poor listings of Lenskart Solutions, Studds, and Orkla India.
Shares of Billionbrains Garage Ventures, parent of India’s leading discount broking firm Groww, opened at ₹114 on the BSE, a premium of ₹14 or 14 per cent over the initial public offering (IPO) price of ₹100. On the NSE, Groww’s share price got listed at ₹112, a premium of 12 per cent.
Earlier today, the grey market premium (GMP) for the Groww IPO was ₹3 per share, indicating the listing price of the stock at ₹103.
What should investors do now?
The listing is done, and the stock is trading with healthy gains amid positive market sentiment. Around 12:20 p.m., the stock was trading at ₹122 on both the BSE and NSE. It rose to above ₹124 level during the intraday deals so far.
With healthy listing gains, investors now appear curious about their next move — should they buy more or book profits? New customers are also wondering whether they should buy the stock at this juncture or stay away.
Mint spoke to several experts to get insights on what investors should do next. Here’s what they said:
Seema Srivastava, Senior Research Analyst at SMC Global Securities, pointed out that Groww’s fundamentals suggest a strong long-term investment potential, though short-term investors should approach with measured caution.
As one of the fastest-growing digital investment platforms, Groww enjoys market leadership in retail participation with over 40 per cent share in NSE’s net active user additions, a vast reach across 98 per cent of pin codes, and exceptionally high organic user acquisition rates.
Moreover, Srivastava highlighted that the company’s asset-light, technology-driven business model ensures scalability and cost efficiency, with adjusted cost-to-operate dropping from 26.32 per cent of revenue in FY23 to 13.77 per cent in FY25, indicating operating leverage and improving profitability.
Srivastava believes the brand’s strong customer engagement, high retention (above 80%), and diversified financial offerings from mutual funds and equities to US stocks, derivatives, and bonds create multiple revenue streams and resilience against market cyclicality.
“For long-term investors, Groww’s strategic roadmap—expanding through wealth management (“W by Groww”), asset management via Groww AMC, and products like LAS, bonds, and margin trading positions it well to capture India’s underpenetrated investment market, expected to nearly double by FY30,” said Srivastava.
Its focus on technology innovation, AI-driven personalisation, and disciplined cost control provides durable competitive advantages.
However, Srivastava cautioned that investors must remain mindful of risks such as overdependence on broking income (84.5 per cent of FY25 revenue), regulatory changes, and potential market volatility affecting retail trading activity.
“In the short term, post-listing volatility may be high due to exuberant retail participation and valuation sensitivity typical of high-growth fintech IPOs. Traders should consider partial profit booking. In contrast, long-term investors with a three to five-year horizon can consider accumulating on dips, given Groww’s strong brand, scalable tech foundation, and long runway for financial inclusion in India,” said Srivastava.
Shivani Nyati, Head of Wealth at Swastika Investmart, said investors allotted shares may book part profit and hold the remainder for the medium to long term with a stop loss of ₹80.
Nyati pointed out that while low customer acquisition cost, high monthly active users, strong conversion rates from mutual fund to equity investing, and consistent growth in AUM are the company’s key strengths, concerns around high valuation multiples, margin pressures, and regulatory risks in the fintech and brokerage space may keep investors cautious.
According to brokerage firm Mater Capital Services, with India’s largest and fastest-growing investment platform based on active users, Billionbrains Garage Ventures Ltd (Groww) is well-positioned to take advantage of this momentum with its technology-enabled and customer-centric business model.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
