Groww share price: In just three days of listing, Billionbrains Garage Ventures— parent company of discount broking platform Groww — has offered stellar returns for its initial public offering (IPO) investors, creating a sense of loss among those who missed out on the allotment.
Groww IPO shares listed at a 14% premium on the bourses on Wednesday, November 13. Later, it jumped 30.94% to close at ₹130.94 apiece against its IPO price of ₹100. Since then, the stock has risen to a high of ₹153.50, offering over 50% gains. On Friday, Groww’s share price settled at ₹148.41, a premium of 48%.
Is Groww a good buy after recent rally?
While Groww’s business fundamentals remain strong, analysts believe the sharp rise has made valuations steeper, leaving little room for error.
Groww is India’s leading retail broker, with a significant 26.3% market share in active clients by September 2025. This remarkable growth, with a CAGR of 101.7% between FY21 and FY25, far surpasses the industry’s 27%.
Their current outlook remains fundamentally strong due to exceptional financial metrics, robust user growth, and best-in-class digital execution, said Abhinav Tiwari, Research Analyst at Bonanza.
The company’s moat is reinforced by dominant retail market share, a sticky young customer base, and a singular digital brand, said Tiwari. However, he believes the scope for significant near-term upside is capped without new triggers or a major market correction.
Vinit Bolinjkar, Head of Research, Ventura, also opined that for new investors, accumulating on dips rather than chasing current highs is preferred. “The underlying business offers structural growth, but valuations leave limited margin for error.”
At the IPO price of ₹100 itself, Groww was valued at 34 times last fiscal year’s earnings — well above rivals such as Angel One and Motilal Oswal Financial Services, which trade at multiples of about 20 and 27, respectively.
“At these valuations, a large portion of projected growth and profitability is already embedded in the stock price, so future returns will depend on their ability to innovate and expand the market share continually,” Tiwari added.
The major source of revenue is from brokerage, which is cyclical, so further movement in the diversified arm, i.e. wealth management, commodities, margin-trading facilities (MTF), etc,. will be keenly watched.
Should IPO investors book gains?
Meanwhile, for IPO investors sitting on hefty gains, analysts believe that booking partial profits could be a good strategy.
“IPO allottees can book partial profits to lock in gains, given the stock’s rapid appreciation. This strategy lets investors benefit from the rally while retaining exposure for long-term growth,” Bolinjkar opined.
Groww IPO had received 17.60 times subscription on the final day of the share sale on Friday.
The company garnered a little over ₹2,984 crore from anchor investors on November 3. The company is backed by marquee investors such as Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella.
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.
