Stockbroking platform Groww made a bumper debut on the stock exchanges on Wednesday and broke the recent streak of discounted listings. Groww's share price opened at Rs 112 per share on the NSE, 12% higher than the issue price of Rs 100. On the BSE, Groww's share price opened at Rs 114 per share, up 14% from the issue price.
Before Groww’s premium listing, three major IPOs -- Lenskart Solutions, Studds Accessories and Orkla India -- opened on the bourses below the issue price though their respective IPOs recorded high booking numbers. This had raised concerns that investors are wary of the valuations companies are asking in the public market.
Groww shares closed day 1 with a premium of nearly 31% against the issue price of Rs 100. The stock closed 30.94% higher at Rs 130.94 apiece on the BSE and ended 28.85% higher at Rs 128.85 apiece on the NSE. During the session, the stock appreciated by 34.4% each to Rs 134.40 and Rs 134.34 apiece, on the NSE and BSE, respectively. At the end of the trading session, the company's market valuation stood at Rs 79,546.79 crore on the NSE.
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.