Groww IPO listing: Fintech major lists at 14% premium on BSE, 12% on NSE – check details
Groww made a strong debut on Dalal Street on Wednesday, with shares listing on both the BSE and NSE at a premium over the issue price.Shares of Billionbrains Garage Ventures Ltd (Groww) listed at Rs 114 apiece on the BSE, marking a 14% premium over the IPO price of Rs 100.
On the NSE, the stock debuted at Rs 112 per share, up 12% from the issue price.The Bengaluru-based fintech platform’s Rs 6,632 crore IPO was among the most anticipated issues of 2025, and the positive listing reflects steady investor confidence in India’s growing digital investing ecosystem.
Groww IPO GMP trend
The grey market premium (GMP) for Groww IPO stood at Rs 3 per share as of Tuesday evening, down from Rs 16 on the day the issue opened, as reported by ET.
The muted GMP had suggested a likely listing premium of around 4–5%, but the stock exceeded those expectations by opening 12–14% higher on debut.Analysts said the stronger-than-expected listing signals investor optimism toward fintech growth despite regulatory headwinds.As per ET, Prashanth Tapse, Sr VP Research at Mehta Equities, said, “At listing, Groww’s implied valuation appears justifiable, backed by rapid customer growth (over 10 crore 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.”
Buy, sell or hold?
What analysts say
Analysts tracking the stock remain cautiously optimistic.
Raj Gaikar, Research Analyst at Samco Securities, was quoted by ET as saying, “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 Groww’s profitability and strong revenue growth.”He noted that Groww’s valuation at 33x FY25 earnings is slightly higher than peers such as Motilal Oswal Financial Services (29x) and Angel One (31x).Prashanth Tapse of Mehta Equities also advised investors to stay invested, saying, “Those 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.”
Company overview and business model
Founded in 2017, Groww operates a direct-to-customer digital investment platform that allows users to invest in mutual funds, stocks, F&O, ETFs, IPOs, digital gold, and U.S.
stocks.
The app is particularly popular among mutual fund investors.The company also provides margin trading, algorithmic trading, credit facilities, and new fund offers (NFOs) to enhance user engagement.
Its customer base includes both first-time investors and affluent clients, contributing to a healthy mix of revenue streams.
IPO details and structure
The IPO comprised a fresh issue of Rs 1,060 crore and an offer for sale (OFS) of Rs 5,572 crore by existing shareholders.
Proceeds from the fresh issue will fund cloud infrastructure, marketing, and capital infusion into subsidiaries such as Groww Creditserv Tech and Groww Invest Tech.Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, Axis Capital, and Motilal Oswal Investment Advisors were the Book Running Lead Managers, while MUFG Intime India Private Limited served as the Registrar.
Financial performance
In FY25, Groww reported operating revenue of Rs 3,901 crore, up 49% YoY, and a PAT of Rs 1,824 crore, marking a strong turnaround from previous losses.
Its EBITDA margin rose to 60.8%, supported by organic user growth and reduced marketing costs.
The company’s AARPU (average revenue per user) improved to Rs 3,339 in FY25 from Rs 2,541 in FY23, showing higher profitability from its affluent investor base.
Caution amid regulatory uncertainty
Despite solid growth, analysts remain cautious due to SEBI’s tightening oversight of the F&O segment, a key revenue driver for Groww and other discount brokers.
Potential restrictions on weekly options and stricter margin norms could impact trading volumes and revenue growth.At the upper price band, Groww’s valuation of 33.8x FY25 P/E is higher than peers like Angel One (19x) and Anand Rathi Wealth (25x), but analysts believe the premium is justified given Groww’s technology edge, brand visibility and expanding retail franchise.Groww is the first new-age wealthtech firm to list on the Indian bourses, marking a major milestone for the fintech ecosystem.
While listing gains may be moderate, the company’s long-term prospects hinge on diversifying beyond F&O and scaling its wealth management offerings amid increasing regulatory scrutiny.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own.
These opinions do not represent the views of The Times of India.)
