Groww shares expected to list at about 3% premium on Wednesday, experts recommend 'Hold'; here's what latest GMP shows

Groww shares to list on November 12. 

Shares of Billionbrains Garage Ventures Ltd, the parent company of stock broking firm Groww, are expected to list with about a 3 percent premium over the issue price on Wednesday.

The Rs 6,632-crore initial public offering (IPO) of the Bengaluru-based firm received strong investor response, subscribing 17.60 times overall. The company raised Rs 2,984 crore from anchor investors.

The firm had fixed a price band of Rs 95-100 per share, valuing the company at over Rs 61,700 crore at the upper end.

As per market observers, Groww shares are quoting at a premium of around Rs 3 in the grey market, indicating a potential listing gain of 3 percent. Platforms such as Investorgain and IPO Watch both reported a grey market premium (GMP) of 3 percent.

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Founded in 2017, Billionbrains Garage Ventures (Groww) operates a direct-to-customer digital investment platform that offers retail investors access to a wide range of financial products including mutual funds, equities, derivatives, ETFs, IPOs, digital gold and U.S. stocks. Its mobile app enjoys significant traction among retail investors. The company also offers services such as margin trading facility, algorithmic trading, new fund offers and credit products.

Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said, "We expect the company to list at a premium to its issue price, given the current grey market trends. At the upper price band, the company is valued at 33.8 times FY25 P/E, implying a post-issue market capitalisation of Rs 61,736 crore."

He added that Groww aims to strengthen its brand through trust and transparency while expanding its customer base organically. "Investors looking for long-term value can hold the stock, while those seeking partial profit booking may do so and retain the rest for long-term gains," Solanki said.

Prashanth Tapse, Senior Vice President (Research) at Mehta Equities, said Groww shares could list with a gain of 5 to 10 percent, supported by positive market sentiment, though recent subdued listings may temper optimism.

"Groww represents a strong structural story and can act as a proxy for India’s expanding capital market participation," Tapse said. "We recommend investors who received allotments to hold through listing, while new investors can consider entering post-listing if valuations remain reasonable."

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