Groww, a fintech platform, made a notable entrance on Dalal Street, listing its shares at a premium on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). On the BSE, shares debuted at Rs 114, reflecting a 14% increase over the initial public offering (IPO) price of Rs 100, and on the NSE at Rs 112, marking a 12% rise. The startup's IPO, valued at Rs 6,632 crore, generated significant anticipation in 2025, signaling strong investor confidence in the burgeoning digital investment sector in India.
The grey market premium (GMP) for Groww had varied, initially suggesting a modest listing upside. On the day before its listing, GMP was reported at Rs 3 per share, dropping from Rs 16 when the IPO opened. Analysts, however, found the actual listing performance encouraging, interpreting it as an indication of investor enthusiasm regarding fintech opportunities, despite looming regulatory challenges. Industry experts pointed out that Groww’s customer base has surpassed 10 crore users, and it has established a solid presence in retail investing and fund distribution.
As market analysts assess the stock's performance, they express cautious optimism. Recommendations for investors who secured allotments suggest holding the shares for at least two to three years to fully capitalize on anticipated growth. This positivity stems from the company’s projected profitability and consistent revenue improvements. The current valuation of Groww stands at 33 times FY25 earnings; while slightly above some peers, it reflects justifiable growth prospects given the company's performance metrics.
Founded in 2017, Groww offers a user-friendly digital platform that facilitates investments in various financial instruments, including mutual funds, stocks, and digital gold. Its application is especially favored among mutual fund investors, further diversifying its revenue streams through services like margin trading and algorithmic trading. The IPO consists of both a fresh issuance of Rs 1,060 crore and an offer for sale of Rs 5,572 crore from existing shareholders, with funds earmarked for marketing and enhancing operational capabilities.
Financially, Groww has demonstrated impressive growth, reporting an operating revenue of Rs 3,901 crore in FY25, a 49% increase year-on-year, alongside a profitable net income of Rs 1,824 crore. The EBITDA margin has significantly improved to 60.8%, supported by rising user engagement. However, amid such positive metrics, analysts maintain a cautious stance due to potential regulatory constraints, particularly concerning the futures and options trading segment, which contributes substantially to revenue.
In conclusion, as Groww emerges as the first of the new-age wealthtech enterprises to list on Indian exchanges, it marks a significant advancement for the fintech landscape. While immediate gains following the listing might not be extravagant, the company's long-term trajectory appears promising as it seeks to expand its offerings and navigate the dynamic regulatory environment head-on.