Investor interest was sparked when Groww's shares debuted at a 14% premium. Strong fundamentals are highlighted, but experts warn of possible market turbulence and advise cautious optimism.
On Wednesday, November 12, Groww shares made a robust debut on Dalal Street, surpassing the expectations of the gray market and calming investor anxiety about the recent IPO frenzy that followed the subpar debuts of Lenskart Solutions, Studds, and Orkla India.On the BSE, shares of Billionbrains Garage Ventures, the parent company of Groww, the top discount broking company in India, opened at ₹114, a premium of ₹14, or 14%, over the ₹100 IPO price. Groww's shares were listed for ₹112 on the NSE, a 12% premium.
The Groww IPO's grey market premium (GMP) was ₹3 per share earlier today, suggesting that the stock was listed for ₹103.
Now, what should investors do?
The stock is trading with healthy gains amid positive market sentiment now that the listing is complete. The stock was trading at ₹122 on the BSE and NSE at 12:20 p.m. During the intraday transactions thus far, it increased to a level above ₹124.
Now that listing gains are strong, investors seem unsure about what to do next: should they book profits or buy more? Additionally, new buyers are debating whether or not to purchase the stock at this time.
Now, what should investors do?
The stock is trading with healthy gains amid positive market sentiment now that the listing is complete. The stock was trading at ₹122 on the BSE and NSE at 12:20 p.m. During the intraday transactions thus far, it increased to a level above ₹124.
Now that listing gains are strong, investors seem unsure about what to do next: should they book profits or buy more? Additionally, new buyers are debating whether or not to purchase the stock at this time.
To gather advice on what investors should do next, Mint chatted with a number of professionals. What they said was as follows:
Groww's fundamentals speak to a good long-term investment potential, but short-term investors should proceed with moderate caution, according to Seema Srivastava, Senior Research Analyst at SMC Global Securities.
With over 40% of NSE's net active user additions, a wide reach over 98% of pin codes, and remarkably high organic user acquisition rates, Groww, one of the fastest-growing digital investing platforms, leads the market in retail participation.
Groww's fundamentals speak to a good long-term investment potential, but short-term investors should proceed with moderate caution, according to Seema Srivastava, Senior Research Analyst at SMC Global Securities.
With over 40% of NSE's net active user additions, a wide reach over 98% of pin codes, and remarkably high organic user acquisition rates, Groww, one of the fastest-growing digital investing platforms, leads the market in retail participation.
Additionally, Srivastava emphasized that the company's technology-driven, asset-light business model guarantees scalability and cost effectiveness. The adjusted cost-to-operate decreased from 26.32 percent of revenue in FY23 to 13.77 percent in FY25, demonstrating operating leverage and increasing profitability.
According to Srivastava, the brand's robust client interaction, high retention rate (over 80%), and diverse financial offerings—which range from US stocks, derivatives, and bonds to mutual funds and equities—create various 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," stated Srivastava.
According to Srivastava, the brand's robust client interaction, high retention rate (over 80%), and diverse financial offerings—which range from US stocks, derivatives, and bonds to mutual funds and equities—create various 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," stated Srivastava.
According to Shivani Nyati, Head of Wealth at Swastika Investmart, investors who receive shares may book a portion of the profit and keep the remaining portion for the medium to long term with a ₹80 stop loss.
Nyati noted that although the company's main advantages include low customer acquisition costs, high monthly active users, strong conversion rates from mutual funds to equity investing, and steady growth in AUM, investors may remain wary due to worries about high valuation multiples, margin pressures, and regulatory risks in the fintech and brokerage sectors.
Mater Capital Services, a brokerage firm, claims that Billionbrains Garage Ventures Ltd. (Groww), with its technology-enabled and customer-focused business strategy, is well-positioned to capitalize on India's largest and fastest-growing investment platform based on active users.
Nyati noted that although the company's main advantages include low customer acquisition costs, high monthly active users, strong conversion rates from mutual funds to equity investing, and steady growth in AUM, investors may remain wary due to worries about high valuation multiples, margin pressures, and regulatory risks in the fintech and brokerage sectors.
Mater Capital Services, a brokerage firm, claims that Billionbrains Garage Ventures Ltd. (Groww), with its technology-enabled and customer-focused business strategy, is well-positioned to capitalize on India's largest and fastest-growing investment platform based on active users.
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