Groww Shares Jump 50% Post-IPO: Should Investors Chase the Stock Now?

The share price of Billionbrains Garage Ventures, the parent company of online brokerage Groww, has surged by nearly 48% to 50% since its IPO, stoking excitement among investors. Still, some experts warn that the rapid run-up leaves little room for further near-term gains.

Groww’s Rs. 6,632-crore IPO, priced at Rs. 95–100 per share, saw an upbeat debut on November 12, opening at Rs. 112 on the NSE and Rs. 114 on the BSE, with substantial listing gains of 12% and 14%.

Since then, it has extended its rally. As of November 14, Groww's stock reached an intraday high of approximately Rs. 148, marking a nearly 48% jump over its IPO price.

What’s Driving the Rally?

Analysts point to Groww's dominant position in India's retail investing rise. It has a large base of young users-according to reports, 70% of its users are under 35, and for many of them, Groww is their first investing app. Its scale is considerable: Groww commands about 26% market share among active clients on the NSE.

Financially, the company is profitable, reporting a net profit of Rs. 1,824 crore on revenues of Rs. 3,902–4,000 crore for FY25. Proceeds from the IPO will be used to strengthen its cloud infrastructure, expand its wealth-management business, and scale its margin trading facility, among other purposes.

Risks and Investor Caution

Despite that optimism, not everyone thinks the current valuation can be sustained. Analysts say Groww’s near-term growth already appears priced in, warning the stock’s sharp rally could falter if regulatory changes emerge or if brokerage revenues dip during market slowdowns.

Brokerage revenues, in particular, are sensitive to market sentiment, with the trading volume falling in weak markets, thereby hurting growth.

The competition from other players such as Zerodha, Angel One, and Upstox, who are vigorously promoting digital investments, is expected to hurt its profit and market share. Is it time for the investors to follow the stock?

For the new investors, it could be a more cautious approach to wait for the stabilization of the price after listing or for the dips, rather than pursuing the current peak.

Analysts believe that, though the long-term argument for Groww is very strong, particularly considering the boom in the Indian retail investment trend, buying stocks aggressively in the short term may be risky.

Also Read: How Can You Tell if an IPO is Really Worth Your Money? Simple Tips

Conclusion

The recent listing of Groww and the stock's post-IPO rally amply indicate investor confidence in India's retail investing boom.

However, with the stock up ~50% in a week, concerns arise about market cyclicality and valuations. Investors betting on this fintech name would do well to focus on long-term fundamentals and guard against near-term volatility.