Groww IPO day 2: Retail rush meets steep pricing — can the stock sustain its hype after listing?
The Groww IPO has sparked a retail frenzy, drawing massive investor participation within days of opening. But as India’s largest brokerage platform chases a Rs 62,000 crore valuation, analysts are questioning whether the price — and the rally — can sustain after listing.
- Nov 6, 2025,
- Updated Nov 6, 2025 5:39 PM IST
India’s booming retail investment wave has found its newest star — Billion Brains Garage Ventures Ltd, better known as Groww. The Bengaluru-based fintech unicorn, founded in 2016, has opened its Rs 6,600 crore IPO for subscription from November 4–7, aiming for a valuation of nearly ₹62,000 crore. With over 1.2 crore active users, Groww has already surpassed Zerodha’s 74 lakh, cementing its position as India’s largest brokerage platform.
But even as retail investors flood in, experts are asking: Is Groww’s IPO fairly priced?
IPO response
As of 4:58 PM on November 6, the Groww IPO was 1.64 times subscribed overall. The response was strongest from Retail Individual Investors (RIIs), who subscribed 5.01 times, while Non-Institutional Investors (NIIs) took up 2.26 times their quota. Qualified Institutional Buyers (QIBs), however, showed muted enthusiasm, with only 0.2 times subscription so far — indicating some institutional caution.
According to SEBI-registered analyst Sahil Bhadviya, the IPO represents a “defining moment for India’s fintech story,” but one that comes with valuation concerns. “Groww has built a phenomenal business with strong brand trust and scale, but the price seems fully baked in,” he said.
Groww India IPO Key Details Price Band Rs 95-100 per share IPO Date Nov 4-7 GMP 12% IPO Allotment date November 10 Listing date November 12
Groww IPO price band
The IPO is priced at Rs 95–100 per share, with applications required in lots of 150 shares. At the top end of the price range, the minimum investment works out to roughly Rs 15,000. As of November 6, Groww’s IPO is trading at a grey market premium of Rs 13, indicating an expected 13% listing gain over its issue price of Rs 100.
Investing super app
Groww started in 2016 as a mutual fund distribution platform, later expanding into stock broking, derivatives, bonds, and asset management. With its acquisition of Indiabulls AMC, the company entered the mutual fund manufacturing space, diversifying its revenue streams. Today, its suite includes stocks, ETFs, MTF (margin trading facility), loans against securities, and more.
The company earns primarily from brokerage fees and commissions, which formed over 90% of revenue in FY23, though interest income from MTF has risen sharply — touching 20% of revenue in Q1 FY26.
Bhadviya highlights Groww’s biggest moat — its youthful, loyal customer base. “Nearly 70% of Groww users are under 35, mostly from Tier 2 and Tier 3 cities. For millions, Groww is their first investing experience,” he said. “Once users start here, they rarely switch — that’s powerful retention.”
Growth story vs cyclical risks
India’s retail investment boom has created fertile ground for Groww’s rise. The number of demat accounts has jumped from 5 crore in FY21 to nearly 20 crore in FY25, while monthly SIP inflows soared from Rs 3,600 crore in 2016 to nearly Rs 30,000 crore today. Yet, equities account for less than 6% of household assets, leaving massive headroom for growth.
However, analysts warn that brokerage revenues are cyclical. “Activity peaks in bull markets and drops when sentiment cools,” Bhadviya said. “Angel One’s 41% profit drop post-rally is a reminder of how volatile this sector is.”
Competition is also heating up. Groww faces rivals such as Zerodha, Upstox, Angel One, and Jio Financial Services, all pushing digital-first offerings that could squeeze margins.
Numbers behind the buzz
Groww’s financials have been volatile. Revenue grew at an 85% CAGR over two years, but profitability has swung wildly — from a Rs 457 crore profit in FY23, to a Rs 800 crore loss in FY24, and then a Rs 1,800 crore profit in FY25 amid a bullish market.
At its IPO valuation of Rs 62,000 crore, Groww trades at a price-to-sales ratio of 15.8 and a price-to-earnings (P/E) multiple of 34 — well above Angel One’s 4.9 and ,29 respectively. “That makes Groww fully priced,” Bhadviya cautions. “It’s a great company, but not a cheap one.”
Analyst views
A report by Anand Rathi Research echoed similar sentiments. “Groww’s ambition to democratise investing is commendable, but the IPO is already fully priced,” it said. Still, it recommended subscribing from a long-term perspective, citing strong product diversification into MTF, commodities, API trading, and bonds.
Simranjeet Singh Bhatia of Almondz Group said Groww is actively reducing its dependency on broking — down to 79.69% of revenue in Q1 FY26 — while expanding through acquisitions like Fisdom and Indiabulls AMC, which boosted its AUM to Rs 2,000 crore. “At scale, valuations could look more reasonable,” he added.
Independent analyst Deepak Jasani advised caution: “P/E is just one metric. Growth potential matters more. If Groww sustains its trajectory, a higher multiple may be justified — but there’s no room for complacency.”
Investor takeaway
In Bhadviya’s words, “Groww has revolutionised how India invests — but even great companies can be poor investments at the wrong price.”
For retail investors hoping for quick listing gains, experts suggest tempering expectations. While Groww’s fundamentals remain strong, its valuation leaves limited margin of safety.
As India’s fintech race intensifies, Groww’s IPO could be the symbol of a new financial era — but for investors, the age-old wisdom still applies: great stories don’t always make great buys.
India’s booming retail investment wave has found its newest star — Billion Brains Garage Ventures Ltd, better known as Groww. The Bengaluru-based fintech unicorn, founded in 2016, has opened its Rs 6,600 crore IPO for subscription from November 4–7, aiming for a valuation of nearly ₹62,000 crore. With over 1.2 crore active users, Groww has already surpassed Zerodha’s 74 lakh, cementing its position as India’s largest brokerage platform.
But even as retail investors flood in, experts are asking: Is Groww’s IPO fairly priced?
IPO response
As of 4:58 PM on November 6, the Groww IPO was 1.64 times subscribed overall. The response was strongest from Retail Individual Investors (RIIs), who subscribed 5.01 times, while Non-Institutional Investors (NIIs) took up 2.26 times their quota. Qualified Institutional Buyers (QIBs), however, showed muted enthusiasm, with only 0.2 times subscription so far — indicating some institutional caution.
According to SEBI-registered analyst Sahil Bhadviya, the IPO represents a “defining moment for India’s fintech story,” but one that comes with valuation concerns. “Groww has built a phenomenal business with strong brand trust and scale, but the price seems fully baked in,” he said.
Groww India IPO Key Details Price Band Rs 95-100 per share IPO Date Nov 4-7 GMP 12% IPO Allotment date November 10 Listing date November 12
Groww IPO price band
The IPO is priced at Rs 95–100 per share, with applications required in lots of 150 shares. At the top end of the price range, the minimum investment works out to roughly Rs 15,000. As of November 6, Groww’s IPO is trading at a grey market premium of Rs 13, indicating an expected 13% listing gain over its issue price of Rs 100.
Investing super app
Groww started in 2016 as a mutual fund distribution platform, later expanding into stock broking, derivatives, bonds, and asset management. With its acquisition of Indiabulls AMC, the company entered the mutual fund manufacturing space, diversifying its revenue streams. Today, its suite includes stocks, ETFs, MTF (margin trading facility), loans against securities, and more.
The company earns primarily from brokerage fees and commissions, which formed over 90% of revenue in FY23, though interest income from MTF has risen sharply — touching 20% of revenue in Q1 FY26.
Bhadviya highlights Groww’s biggest moat — its youthful, loyal customer base. “Nearly 70% of Groww users are under 35, mostly from Tier 2 and Tier 3 cities. For millions, Groww is their first investing experience,” he said. “Once users start here, they rarely switch — that’s powerful retention.”
Growth story vs cyclical risks
India’s retail investment boom has created fertile ground for Groww’s rise. The number of demat accounts has jumped from 5 crore in FY21 to nearly 20 crore in FY25, while monthly SIP inflows soared from Rs 3,600 crore in 2016 to nearly Rs 30,000 crore today. Yet, equities account for less than 6% of household assets, leaving massive headroom for growth.
However, analysts warn that brokerage revenues are cyclical. “Activity peaks in bull markets and drops when sentiment cools,” Bhadviya said. “Angel One’s 41% profit drop post-rally is a reminder of how volatile this sector is.”
Competition is also heating up. Groww faces rivals such as Zerodha, Upstox, Angel One, and Jio Financial Services, all pushing digital-first offerings that could squeeze margins.
Numbers behind the buzz
Groww’s financials have been volatile. Revenue grew at an 85% CAGR over two years, but profitability has swung wildly — from a Rs 457 crore profit in FY23, to a Rs 800 crore loss in FY24, and then a Rs 1,800 crore profit in FY25 amid a bullish market.
At its IPO valuation of Rs 62,000 crore, Groww trades at a price-to-sales ratio of 15.8 and a price-to-earnings (P/E) multiple of 34 — well above Angel One’s 4.9 and ,29 respectively. “That makes Groww fully priced,” Bhadviya cautions. “It’s a great company, but not a cheap one.”
Analyst views
A report by Anand Rathi Research echoed similar sentiments. “Groww’s ambition to democratise investing is commendable, but the IPO is already fully priced,” it said. Still, it recommended subscribing from a long-term perspective, citing strong product diversification into MTF, commodities, API trading, and bonds.
Simranjeet Singh Bhatia of Almondz Group said Groww is actively reducing its dependency on broking — down to 79.69% of revenue in Q1 FY26 — while expanding through acquisitions like Fisdom and Indiabulls AMC, which boosted its AUM to Rs 2,000 crore. “At scale, valuations could look more reasonable,” he added.
Independent analyst Deepak Jasani advised caution: “P/E is just one metric. Growth potential matters more. If Groww sustains its trajectory, a higher multiple may be justified — but there’s no room for complacency.”
Investor takeaway
In Bhadviya’s words, “Groww has revolutionised how India invests — but even great companies can be poor investments at the wrong price.”
For retail investors hoping for quick listing gains, experts suggest tempering expectations. While Groww’s fundamentals remain strong, its valuation leaves limited margin of safety.
As India’s fintech race intensifies, Groww’s IPO could be the symbol of a new financial era — but for investors, the age-old wisdom still applies: great stories don’t always make great buys.