Grow shares rise
Groww’s parent company is Billionbrains Garage Ventures Ltd. The shares created such a storm after listing that investors were surprised. On Tuesday, November 18, the stock rose for the fourth consecutive day and reached a new high of Rs 194 on NSE, jumping more than 11%.
This jump seems even bigger because the IPO price of the company was Rs 100, which means a return of about 94% within a few days of listing. Not only this, it is also trading 70% above its BSE listing price of Rs 114.
Tremendous craze in IPO – investors invested money openly
Groww’s Rs 6,632 crore IPO was opened between November 4 and 7 and during this period the sub-category saw excellent demand. Overall the IPO was subscribed 17 times. QIBs got the most interest, retail investors subscribed 9 times and non-institutional investors subscribed 14 times. It is clear that the market has long-term confidence in Groww’s model, brand and growth.
Company story – Started in 2016, today 10 crore users
Launched in 2016, Groww turned into India’s most popular investment platform in a few years. Today it has 10 crore registered users and more than 60 lakh active investors. Groww’s hold in the entire ecosystem of mutual funds, equity broking and derivatives seems to be getting stronger.
How did the price double?
Market experts say that Groww’s rally is not just listing hype. There are many strong factors working behind this. Low customer acquisition costs, fast growing monthly users, strong cross-selling in equities, consistent AUM growth and investor confidence in the brand. For this reason, the market value of Groww today is more than that of 8 other listed brokers combined.
But are the dangers over?
Experts are also saying that the faster the pace, the greater the risk. Valuations of fintech and broking companies are rising rapidly, and regulatory changes in the sector can change the picture any time. Therefore, any investors who are looking at Groww should not take decisions just by looking at the surge.
What do we do now? Buy, Sell or Hold?
According to analysts, those who have got allotment in IPO can hold it for medium to long term. The structural story of the company is still considered strong. For those who did not get the shares, the advice is that do not be in a hurry to jump into the rally now, watch the subsequent trends and consider buying gradually on any good correction.