The shares of Billionbrains Garage Ventures, the parent company of leading stock broking platform Groww, listed at Rs 114 apiece on BSE on November 12. This marks a premium of 14 percent over the IPO price of Rs 100 per share.
On NSE, the shares listed with 12 percent premium over the IPO price at Rs 112 apiece. Its market capitalisation at debut stood at Rs 69,144 crore.
The stock then recorded sharp gains, jumping 15 percent higher to close at Rs 130.94 apiece. At close, the stock was up nearly 31 percent from its IPO price. Its market capitalisation now stands at Rs 80,837 crore.
Listing premium beats grey market expectations:
The listing premium has beaten grey market expectations. Ahead of listing, the unlisted shares of the company were trading with 5 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. The GMP has fallen from the nearly 17 percent quoted by the site before the IPO opened for public bidding.
Groww made a good IPO debut, reflecting healthy investor confidence driven by strong brand recall and rapid user growth in the Indian digital investing ecosystem, says Shivani Nyati of Swastika Investmart.
The Rs 6,632-crore IPO of Groww saw strong investor interest during its three days of public bidding, being subscribed nearly 18 times its offer size between November 4 and November 7.
About Groww IPO:
The initial public offering of Billionbrains Garage Ventures Private Limited, the parent company of the popular broking platform Groww, opened for public subscription to raise Rs 6,632.30 crore at a price band of Rs 95-100 per share. The maiden public issue comprised a fresh issue of shares worth Rs 1,060 crore, and an offer-for-sale of 55.72 crore shares, valued at Rs 5,572.30 crore, by existing investors.
Groww has built a massive user base in the retail investment space and is backed by marquee investors — Peak XV Partners, YC Holdings, Tiger Global Management, and Sequoia Capital. Investors could bid for a minimum of 150 shares, which translates to an investment of around Rs 15,000 at the upper end of the price band.
Here's what brokerages said:
Master Capital Services advised investors to subscribe to the issue for the long term. "India's investment and wealth management industry is undergoing a major transformation driven by the rapid adoption of digital-first investment platforms," it said.
As India continues its transition toward digital investing, the industry presents strong potential for sustained growth and margin expansion. Groww, as India’s largest and fastest-growing investment platform by active users based on NSE active clients, with approximately 12.6 million active clients, is strategically positioned to capitalize on this momentum through its technology-led, customer focused business model, the brokerage said.
Angel One held a 'Neutral' rating for investors with a long-term perspective, noting that the company’s post-issue P/E of 40.79x valuation at the upper price band of Rs 100 per share, appears steep compared to peers.
Follow all IPO news here.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
