The stock made a strong debut on the exchanges, listing at Rs 114 on the BSE, a 14% premium to its issue price of Rs 100, and at Rs 112 on the NSE, marking a 12% premium.
So, what should investors do now that the stock has already delivered impressive listing gains?
The debut performance underscores strong investor appetite, backed by Groww’s positioning in India’s rapidly expanding digital investment ecosystem. The company has built a loyal user base through its mobile-first platform offering equity trading, mutual funds, fixed deposits, and US stock investing — all anchored by a clean UI/UX and transparent pricing.
Shivani Nyati, Head of Wealth at Swastika Investmart, said, “Groww made a strong debut on the stock market, listing at around Rs 112, roughly 12% above its issue price of Rs 100, reflecting healthy investor confidence driven by strong brand recall and rapid user growth in India’s digital investing ecosystem.”
She further highlighted the company’s strengths, stating, “The company’s strengths include low customer acquisition cost, high monthly active users, strong conversion rates from mutual fund to equity investing, and consistent growth in assets under management (AUM).”Despite the positive debut, Nyati also flagged certain risks investors should keep in mind. “Concerns around high valuation multiples, margin pressures, and regulatory risks in the fintech and brokerage space have weighed on cautious investors,” she said.On investment strategy, she advised, “Investors and traders allotted shares may book partial profits and hold the remainder for the medium to long term, with a stop loss at Rs 80.”
Prashanth Tapse, Senior VP (Research) at Mehta Equities, also weighed in on the listing, saying, “Groww’s listing was slightly stronger than we had expected, and the implied valuation appears justifiable, backed by rapid customer growth (over 10 crore registered users), strong brand recall in retail investing, rising market share in F&O and mutual fund distribution, and a scalable digital business model with low incremental cost.”
Tapse views Groww as a long-term structural story, adding, “Groww represents a strong long-term play and can serve as a proxy for India’s expanding capital market participation.”
Outlining a post-listing strategy, Mehta Equities recommended: “Allotted investors: HOLD for the long term, given the company’s structural strengths and growth potential, while acknowledging short-term market risks, with a medium-term target of Rs 125–130. Non-allotted investors: Can accumulate Groww and monitor post-listing performance, considering adding on any meaningful dips.”
He further noted that the IPO pricing appeared reasonable relative to sector peers. “Groww’s IPO was fairly priced in the range of Rs 95-100 per share, not overly aggressive compared to other Indian brokerage valuations,” Tapse said.
Overall, while analysts acknowledge potential near-term volatility, they maintain a long-term positive view on Groww, underpinned by its solid business fundamentals and expanding role in India’s retail investing landscape.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)