Groww Shares See Profit Booking After Delivering 37% Returns Over Listing Price In Two Days

Shares of Billionbrains Garage Ventures, the parent company of the online investment platform Groww, are experiencing profit booking after a remarkable rally following its market debut. After listing at a premium, the stock continued its upward trajectory, delivering substantial returns to investors within a short period.

On its first day of trading, Groww's shares listed at ₹114 on the Bombay Stock Exchange (BSE), a 14% premium over the initial public offering (IPO) price of ₹100. The stock also debuted strong on the National Stock Exchange (NSE) at ₹112, a 12% increase from the IPO price. This strong debut reflected positive investor sentiment towards India's growing digital investing ecosystem.

The rally continued into the second day, with the stock soaring to a new peak of ₹153.50 on the BSE, marking a 17.2% increase. As of Thursday, the stock was trading nearly 37% above its IPO price. This impressive performance quickly made Groww one of the most closely watched listings of the year. The company's market capitalization also surged, reaching close to ₹1 lakh crore.

However, after these substantial gains, some investors have begun to book profits, leading to a slight correction in the stock price. This profit booking is not unexpected after such a rapid increase and is a common phenomenon in the stock market.

Factors Behind Groww's Success

Several factors contributed to Groww's successful IPO and subsequent rally:

• Strong Investor Confidence: The IPO was oversubscribed by 17.60 times, demonstrating high investor confidence in Groww's growth potential, business scalability, and profitability.
• Leading Discount Broker: Groww has transformed how retail investors participate in the markets, becoming one of India's leading investment and trading platforms. The platform allows users to invest in stocks, IPOs, derivatives, bonds, and mutual funds. It also supports margin trading and personal loans, creating a comprehensive digital financial ecosystem for retail investors.
• Rapid User Growth: Groww's user base has expanded rapidly, with the number of active users growing at a CAGR of 52.74% from early FY2023 through the quarter ended June 30, 2025. This growth underscores the scalability of Groww's platform and the increasing popularity of digital investing in India.
• Financial Performance: In fiscal year 2025, Groww reported operating revenue of ₹3,901 crore, a 49% year-over-year increase, and a profit after tax (PAT) of ₹1,824 crore, a significant turnaround from previous losses. Its EBITDA margin also rose to 60.8%, driven by organic user growth and lower marketing costs.

Market Analysts' Recommendations

Market analysts have offered varied recommendations to investors following Groww's listing:

• Hold for the Long Term: Some analysts advise allotted investors to hold their shares for the long term, citing the company's structural strengths and growth potential. They acknowledge short-term market risks but suggest a medium-term target price of ₹125–130.
• Accumulate on Dips: Analysts suggest that investors who did not receive an IPO allotment can accumulate Groww shares on any meaningful dip, monitoring the stock's performance post-listing.
• Book Partial Profits: Some experts recommend that investors book partial profits at the current levels, given that the stock is fully priced-in. They advise holding the remaining position for the medium to long term with a stop-loss to mitigate potential downside risks.

Overall, Groww's IPO has been a standout success, reflecting the strong potential of India's fintech industry and the increasing adoption of digital investing. While profit booking is natural after a significant rally, the company's strong fundamentals and growth prospects suggest a positive long-term outlook.