Groww, the online investment platform, made a strong debut on the stock market on Tuesday. Its shares, priced at ₹100 in the IPO, opened at ₹112 on the NSE and ₹114 on the BSE, a 12–14% gain on listing day. The IPO was heavily oversubscribed, with total demand about 17.6 times the shares on offer. Retail investors alone bid nearly 9.4 times.
In the grey market before listing, Groww’s shares were trading at a small premium of ₹3, down from earlier higher expectations.
The company has been growing rapidly, with active users rising sharply and affluent clients expanding at a faster pace. Groww’s cost to acquire customers remains relatively low compared to peers, supporting healthy margins.
However, experts caution that the stock is trading at a high valuation which is roughly 33–40 times projected FY25 earnings. Some analysts suggest holding IPO allotments for 2–3 years to realize potential gains rather than expecting quick profits.
Groww is expanding into lending, insurance distribution, and wealth management, but these newer segments are yet to scale significantly. Investors are also reminded of risks such as regulatory changes and dependence on financial markets.
For now, Groww’s listing reflects strong investor interest, but experts advise weighing growth potential against the high valuation before making investment decisions.