NEW DELHI: Stockbroking platform Groww made a bumper debut on the stock exchanges on Wednesday. Groww share price opened at Rs 112 per share on the NSE, 12 percent higher than the issue price of Rs 100. On the BSE, Groww's share price today opened at Rs 114 per share, up 14 percent from the issue price.
Soon after hitting the bourses, shares of Groww gained as much as 21%.
Groww’s market capitalisation at debut stood at Rs 69,144 crore. The listing is significantly above the grey market expectations. Ahead of its market debut, the unlisted shares of the company were trading with 5 percent grey market premium (GMP) over the IPO price.
The IPO of Billionbrains Garage Ventures, the parent company of Groww, was subscribed 17.60 times by the end of its closing day of bidding. The initial share sale received bids of about 641.87 crore shares against 36.47 crore shares on offer.
The Qualified Institutional Buyers (QIBs) led the buying, bidding for 438.04 crore shares against their quota of 19.89 crore, translating to 22.02 times subscription. The portion for Non-Institutional Investors (NIIs) was booked 14.20 times and the retail investor quota fetched 9.43 times the subscription.
The IPO of Groww was a fresh issue of Rs 1,060 crore and an offer-for-sale of Rs 5,572 crore, totalling Rs 6,632 crore. It is the second big IPO to hit the bourses in recent times along with eyewear major Lenskart.
Shivani Nyati, Head of Wealth at Swastika Investmart said Groww’s debut reflects healthy investor confidence driven by strong brand recall and rapid user growth in the Indian digital investing ecosystem.
“The IPO attracted significant institutional participation, driven by expectations of further market share gains from traditional brokers, strong customer additions, and improving operating leverage. Investors/traders allotted shares may book part profit and hold the remain for the medium to long term with stoploss of 80,” said Nyati.
Meanwhile, India’s equity market opened positively on Wednesday amid speculations that the India-US trade deal will be finalised soon and the exit polls indicating a decisive victory for the NDA in Bihar. At 09:15 a.m., the Sensex was up 415.06 points or 0.49 percent at 84,286.38, and the Nifty was up 121.90 points or 0.47 percent at 25,816.85.