Groww IPO: What Top Brokerages Are Saying About the Rs 6,632 Crore Offer

Groww, India’s rapidly expanding fintech platform, has filed for a Rs 6,632 crore IPO, comprising a fresh issue of Rs 1,500 crore and an OFS of Rs 5,132 crore. The move has drawn mixed reactions from leading brokerages—here’s a breakdown of their insights, valuations, and investment advice.

1. Morgan Stanley: Long-Term Growth Bet

Rating: Bullish
Fair Value: Rs 1,200–1,300/share

Morgan Stanley praises Groww’s 10M+ active users and dominance in discount broking. Key highlights:
– 77% YoY revenue growth in FY24, fueled by trading and mutual fund cross-selling.
– First profitable year (FY24) with scalable operations.
– Estimates $7–8B market cap, citing underpenetrated retail investing.

2. Goldman Sachs: Optimistic but Cautious

Rating: Subscribe for Listing Gains
Fair Value: Rs 950–1,100/share

Goldman notes 15% market share but flags risks:
– Regulatory uncertainty around zero-commission models.
– High customer acquisition costs may pressure margins.
– Advises holding for short-term gains, not long-term bets.

3. JP Morgan: Neutral on Premium Valuation

Rating: Wait-and-Watch
Fair Value: Rs 900–1,000/share

JP Morgan warns of:
– Margin pressures from rising marketing spends.
– Fierce competition (Zerodha, Angel One).
– Suggests observing post-listing performance before investing.

4. Kotak Securities: Aggressive Buy

Rating: Strong Buy
Fair Value: Rs 1,400–1,500/share

Kotak highlights Groww’s tech edge and 4% equity penetration in India:
– Projects 25–30% post-listing upside.
– Risks: Competition and regulatory scrutiny.

5. ICICI Direct: Medium-Term Play

Rating: Subscribe
Fair Value: Rs 1,100–1,200/share

ICICI notes:
– 20% EBITDA margins in FY24.
– Expects listing pop but advises profit-taking later.

Should You Invest in Groww’s IPO?

Pros:
✅ High growth in India’s retail investing boom.
✅ Strong brand and tech-first approach.

Cons:
❌ Valuation concerns (P/E ~100x).
❌ Competition and regulatory risks.

Verdict: Suitable for listing gains, but long-term investors should await stability.

Track Groww’s IPO updates on NextMinuteNews!