“Groww is likely to list at a premium of around 4-5% over the IPO price,” said Raj Gaikar, research analyst at Samco Securities. The company sold shares at ₹100 apiece in the issue.
The grey market premium (GMP) – the extra price investors are willing to pay over the IPO price in the unofficial market before listing – for Groww was at ₹3, or 3% per share, on Tuesday evening, according to ipowatch.in. The premium is down from ₹16 on November 4, the day the issue opened. The ₹6,632-crore issue of the broking firm was subscribed 17.6 times.
If Groww’s listing is in line with what the unofficial grey market is projecting, it will join the list of companies that have seen modest debuts in recent weeks. Shares of Lenskart had listed at a 1.7% discount, while shares of Orkla India last week listed just 2.8% higher than their respective issue prices.
The stock is best suited for investors willing to hang in there for a longer period, said analysts.
“For investors who have received allotments, we recommend holding the stock for at least 2-3 years, as we anticipate further upside over that period, given that Groww is already profitable and has demonstrated exponential revenue growth in recent years,” said Gaikar. He said while the stock’s valuation at 33 times FY25 earnings is slightly at a premium compared to peers such as Motilal Oswal Financial Services (29 times) and Angel One (31 times). Some analysts recommend buying the stock if it weakens after listing.
“We recommend that investors who are allotted shares should hold through listing, while new investors can consider entering post-listing if valuations remain reasonable and business momentum continues – particularly on any post-listing dips as a potential entry point,” said Prashanth Tapse, senior vice president (research) at Mehta Equities.