On November 12, shares of Billionbrains Garage Ventures, the parent company of the popular stock broking platform Groww, debuted on the Bombay Stock Exchange (BSE) at Rs 114 per share, representing a 14% premium over the initial public offering (IPO) price of Rs 100. Meanwhile, on the National Stock Exchange (NSE), shares opened at Rs 112, a 12% premium. The company's market capitalization at listing reached an impressive Rs 69,144 crore, indicating strong investor confidence.
The listing premium exceeded expectations in the grey market, where the unlisted shares traded at a mere 5% premium over the IPO price prior to its debut. This contrasts with the peak of 17% observed before the IPO was available for public bidding. The IPO, aiming to raise Rs 6,632 crore, garnered substantial investor interest, being oversubscribed nearly 18 times during the three-day subscription period from November 4 to November 7.
Billionbrains Garage Ventures’ IPO consisted of a fresh issue of shares worth Rs 1,060 crore alongside an offer-for-sale of approximately 55.72 million shares valued at Rs 5,572.30 crore from existing investors. The strong listing reflects the significant growth and popularity of Groww within India's rapidly evolving digital investment landscape, supported by notable backers including Peak XV Partners, YC Holdings, Tiger Global Management, and Sequoia Capital.
Brokerage firms have highlighted the potential for long-term growth in the digital investment sector, urging investors to consider subscribing to the IPO. Master Capital Services remarked on the transformative nature of India's investment and wealth management industry, driven by the rapid adoption of digital solutions. With approximately 12.6 million active clients, Groww stands out as the largest and fastest-growing investment platform based on active users, showcasing its technology-driven and customer-centric approach.
Despite this positive outlook, Angel One advised a more cautious approach, assigning a 'Neutral' rating for long-term investors based on concerns over the company's post-issue price-to-earnings (P/E) ratio of 40.79x, which could be viewed as steep in comparison to peers. As the digital investment landscape continues to unfold in India, Billionbrains Garage Ventures appears well-positioned to leverage opportunities and support sustained growth in the emerging market.
In summary, the successful debut of Billionbrains Garage Ventures captures the growing confidence in India's digital investment platforms, reflecting current market trends and investor behavior. The company aims to continuously enhance its user base and solidify its standing as a leader in the digital financial services sector.