Fintech unicorn Groww made a stellar stock market debut, listing its shares at a 12-14% premium over its Rs 100 issue price on the BSE and NSE. This performance exceeded modest expectations.
Fintech unicorn Groww made a stellar debut on Dalal Street on Wednesday, listing with solid gains on both the BSE and NSE. The Bengaluru-based wealth-tech firm’s shares opened at Rs 114 on the BSE, a 14% premium over its issue price of Rs 100, while debuting at Rs 112 on the NSE, up 12% from the IPO price.
The Rs 6,632-crore IPO was among the most awaited issues of 2025, and its upbeat listing reflects the strong investor faith in India’s fast-expanding digital investing ecosystem.
GMP Surprise and Investor Mood
The market had expected a modest listing. The grey market premium (GMP) for Groww’s IPO had dropped to just Rs 3 per share by Tuesday evening, suggesting a listing premium of about 4–5%. However, the stock comfortably beat expectations, opening nearly three times higher than what the GMP indicated.
Analysts said the better-than-expected performance underlines the optimism around fintech growth, even amid tighter regulations.
“At listing, Groww’s valuation appears justifiable,” said Prashanth Tapse, Sr VP (Research) at Mehta Equities. “It’s backed by rapid customer growth—over 10 crore users—strong brand recall in retail investing, and a scalable digital business model with low incremental costs.”
Buy, Sell, or Hold? What Experts Suggest
Market experts are largely bullish on the stock’s long-term potential.
Raj Gaikar, Research Analyst at Samco Securities, advised investors to hold the stock for at least 2–3 years to capture further upside.
“Groww’s profitability and strong revenue trajectory make it an attractive hold,” Gaikar said. However, he noted that the company’s valuation at 33x FY25 earnings is slightly higher than peers such as Motilal Oswal (29x) and Angel One (31x).
Tapse echoed a similar view, suggesting that new investors could look to enter on post-listing dips, provided the business momentum continues.
Inside Groww’s Business Model
Founded in 2017, Groww operates a direct-to-customer digital platform that enables users to invest in mutual funds, stocks, F&O, ETFs, IPOs, digital gold, and U.S. equities. The platform has built strong appeal among first-time investors and affluent clients alike.
It also offers margin trading, algorithmic tools, and credit facilities, creating multiple revenue streams. The company has been a key driver in democratizing investing in India, especially among millennials.
IPO Structure and Financial Snapshot
Groww’s IPO included 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 be used to upgrade cloud infrastructure, boost marketing, and infuse capital into subsidiaries like Groww Creditserv Tech and Groww Invest Tech.
In FY25, the company reported an operating revenue of Rs 3,901 crore, a 49% jump year-on-year, with a profit after tax of Rs 1,824 crore—a remarkable turnaround from earlier losses.
Its EBITDA margin improved to 60.8%, and average revenue per user (AARPU) rose to Rs 3,339 from Rs 2,541 in FY23.