Groww IPO: GMP hints at double-digit listing gains; will the fintech unicorn’s debut ride investor optimism?
Online brokerage Groww is gearing up for one of the most closely watched listings of 2025, as investors eye the Bengaluru-based fintech’s upcoming public issue amid a buoyant primary market. The company’s grey market premium (GMP) of Rs 10.5 suggests potential listing gains of around 10.5% over the upper end of its Rs 95–100 price band, placing Groww’s estimated valuation at nearly Rs 70,400 crore ($8 billion).The public issue opens on November 4 and closes on November 7, featuring a fresh equity sale worth Rs 1,060 crore alongside an offer for sale (OFS) of 55.72 crore shares by existing investors, according to an ET report. Major early backers such as Peak XV Partners, Ribbit Capital, Y Combinator, Tiger Global, and Kauffman Fellows Fund will partially divest their holdings through the issue.The IPO is being jointly managed by Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, Axis Capital, and Motilal Oswal Investment Advisors.Groww’s listing comes at a time of strong primary market momentum, with Tata Capital’s Rs 15,500-crore IPO and LG Electronics India’s Rs 11,600-crore offering drawing robust investor participation earlier this month. Lenskart’s Rs 2,150-crore IPO, set to open on October 31, adds to the record run of public issues.Valuations and investor sentimentMarket watchers say Groww’s IPO will test investor appetite for profitable fintechs amid mixed global sentiment, ET reported. The company’s unlisted shares have witnessed volatility of up to 17% over the past month, reflecting caution on valuations. Analysts believe the current GMP indicates measured optimism, especially given regulatory uncertainty in the futures and options (F&O) segment, which remains a key revenue driver for online brokers.Strong earnings recoveryGroww’s parent firm, Billionbrains Garage Ventures, reported a net profit of Rs 1,824 crore in FY25, compared to a Rs 805-crore loss in FY24, driven by a 49% year-on-year surge in revenue to Rs 3,902 crore. The growth trend continued into FY26, with Rs 904 crore in revenue and Rs 378 crore in profit in the first quarter alone.As of June 2025, Groww had 12.6 million active NSE clients, representing 26.3% of India’s retail investor base — nearly matching market leader Zerodha.Expanding beyond brokingGroww’s broader portfolio beyond stockbroking — covering wealth management, commodities, margin trading, and loans against shares — could help it weather regulatory challenges. Founded in 2016, the fintech has evolved into a full-scale financial marketplace, backed by global investors, including Microsoft CEO Satya Nadella.A test for India’s fintech storyThe Groww IPO marks a defining moment for India’s digital finance ecosystem. Analysts say its success could reshape sentiment toward listed fintechs, especially after uneven performances by Paytm and Zomato post-listing.If Groww’s debut performs as expected, it could set the tone for the next phase of India’s fintech evolution — one where profitability and scale finally converge.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
