Groww shares list at 14% premium over IPO price on BSE, 12% on NSE

Billionbrains Garage Ventures, the parent company of online investment platform Groww, made an impressive debut on the stock market on Wednesday.

Groww shares make impressive market debut

The company’s shares opened higher than expected, showing strong demand from institutional investors and solid participation from anchor investors.

On the Bombay Stock Exchange (BSE), Groww shares started trading at ₹114 per share, a 14% gain from the issue price of ₹100.

On the National Stock Exchange (NSE), it opened at ₹112, up 12%.

It performed better than what the grey market had predicted, where shares were expected to trade around ₹105. With this debut, Groww’s market value reached ₹69,144 crore.

Before the listing, Groww’s shares in the unlisted (grey) market were trading at about a 5% premium to the issue price, according to data from Investorgain.

This was lower than the 17% premium seen before the IPO opened for public bidding. The company’s ₹6,632 crore IPO was a big hit among investors, being subscribed nearly 18 times during its three-day bidding period from November 4 to November 7.

Groww is India's largest stockbroker with more than 1.4 crore active customers, providing users with investment solutions in mutual funds, stocks, US Stocks, ETFs, and IPO.

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Book profit or hold?

Many analysts had expected a modest debut for Groww, with predictions of a 4–5% premium over the IPO price.

As reported by The Economic Times, Raj Gaikar, a research analyst at Samco Securities, suggested the same.

Data from ipowatch.in showed that the grey market premium (GMP) for Groww was ₹3 per share, or 3%, on the evening before the listing, down from ₹16 earlier in the month.

Despite lower GMP expectations, Groww’s listing turned out much stronger than expected. In comparison, other recent IPOs performed more weakly. For instance, Lenskart listed at a 1.7% discount, and Orkla India at only 2.8% above its issue price.

Analysts say that while Groww’s strong listing is a good sign, it is a stock best suited for long-term investors who are willing to stay invested to benefit from the company’s growth potential.

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