Groww shares up 31% from IPO price in debut trade; what should investors do?

Shares of Billionbrains Garage Ventures Ltd, the parent company of online investment platform Groww, made a strong market debut on Wednesday. The stock listed at Rs 114, a 14 per cent premium over its initial public offering (IPO) price of Rs 100, and later surged 34.34 per cent to hit an intraday high of Rs 134.34. It eventually settled at Rs 130.94, up 30.94 per cent from the issue price.

The Rs 6,632.30 crore IPO of Billionbrains Garage Ventures was open for subscription between November 4 and November 7. The offering comprised a fresh issue of Rs 1,060 crore and an offer for sale (OFS) of up to 55,72,30,051 equity shares.

Market experts largely advised investors to act cautiously after the strong listing.

"Groww witnessed a strong debut. One can consider booking profits at current levels. From a long-term view, investors should wait for a couple of quarters' earnings. At present, the stock is fully priced-in," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Ravi Singh, Chief Research Officer at Mastertrust, said, "We advise short-term investors to book the listing gains, while long-term investors may hold their positions for future returns. Market volatility may also create short-term dips for accumulation in the near term."

Prashanth Tapse, Senior Vice-President (Research) at Mehta Equities, noted, "The company has been growing steadily in the capital market space and holds around 26 per cent market share in India. Today's listing was slightly above our expectations, indicating strong demand. Our post-listing target would be Rs 125–135 for the near term. For those who didn't get IPO allotment, profit booking around Rs 110–112 could provide a good entry point."