Banger IPO: Groww Share Flying To Moon, Up 53% Since Debut On BSE, NSE; BUY Or Hold? Comparison With Motilal

Billionbrains Garage Ventures, which is listed as the leading capital market services provider, Groww is witnessing a strong bull run since its listing on BSE and NSE. On November 13, Groww IPO touched a new 52-week high of Rs 153.50 apiece, and surged by 17.22%. Following this, Groww recorded a strong jump of 53.3% from its IPO issue price of Rs 100 since debut. Groww is now bigger than Motilal Oswal Financial Services, which is the former's rival on exchanges and market. What should investors do?

Groww Share Price:

At the time of writing, Groww is trading at Rs 130.94 apiece on BSE, registering a growth of 14.86% with market cap of Rs 89,393.68 crore. Overall, the newly listed IPO gained by at least 17.22% by hitting new all-time high of Rs 153.50 apiece on BSE. The market cap had crossed over Rs 95,000 crore in the early deals.

Taking into consideration the latest 52-week high, Groww IPO has surged by a whopping 53.3% from its IPO price of Rs 100. The IPO made a premium listing on both exchanges, outperforming new IPOs like Lenskart.

Motilal Oswal Financial Services Share Price:

Groww IPO is bigger than Motilal Oswal on BSE and NSE. Motilal Oswal's market cap currently is around Rs 60,775 crore. The stock price is trading around Rs 1,012 per share, with return on equity of 13.79% and price to equity ratio of 59.36x.

Motilal Oswal stock has surged by nearly 40% in six months, and is still underperforming Groww is trading on its second day of listing.

Should Investors Buy, Sell Or Hold Groww Shares?

As per Prashanth Tapse, Senior VP (Research), Mehta Equities, Groww's listing was slightly more than what we had expected and the implied valuation appears justifiable, backed by rapid customer growth (over 10 crore registered users), strong brand recall in retail investing, rising market share in F&O and mutual fund distribution, and a scalable digital business model with low incremental cost.

Post listing, the expert said, "we continue to believe Groww represents a strong long-term structural story and can act as a proxy for India's expanding capital market participation. Investors should therefore treat it as a medium-to-long-term investment opportunity."

Here's what, Mehta Equities expert recommended:

•Allotted Investors: HOLD for the long term, given the company's structural strengths and growth potential, while acknowledging short-term market risks with a target of Rs 125-130 in medium term.

•Non-Allotted Investors: Can also accumulate Groww and monitor the stock post-listing, and consider adding on any meaningful dip.

Lastly, the expert added, "Groww's IPO was fairly priced in the range of Rs 95-100 per share, which is not overly aggressive compared to other Indian brokerage peers' valuations. This reasonable pricing led to strong investor demand, primarily driven by Qualified Institutional Buyers (QIBs) at 22x subscription and Non-Institutional Investors (NIIs) at 9x, with healthy retail participation relative to other recent offerings."

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