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Groww Share Price- Groww has overtaken many old and established brokerage companies in market value. While decades-old traditional brokerage houses have still not been able to reach a valuation of ₹1 lakh crore, Groww has achieved this feat in a very short span of time.
New Delhi. Shares of BillionBrains Garage Ventures Limited, the parent company of India’s largest trading platform Groww, saw a strong rise today and jumped 20 percent to Rs 178.20. This share had hit the stock market last Wednesday. After listing, this stock has been continuously rising and till now it has jumped 78 percent from its IPO price. With today’s growth, the market capitalization of the company has also crossed Rs 1 lakh crore.
The issue price of Grow shares was ₹100 per share and last Wednesday it was listed at a 12% premium compared to its issue price. The stock closed with a gain of 30% on the first day. Groww IPO received an overwhelming response. The IPO received 17.6 times subscription as compared to the total number of shares offered. Investors bid for 641 crore shares against 36.47 crore shares. The reserve portion for institutional investors was subscribed 22 times, the portion for non-institutional investors 14 times and the portion for retail investors 9 times.
Left behind old brokerage companies in valuation
Groww has overtaken many old and established brokerage companies in market value. While decades-old traditional brokerage houses have still not been able to reach a valuation of ₹1 lakh crore, Groww has achieved this feat in a very short span of time. The market cap of Motilal Oswal Financial Services is around ₹59,528 crore. Anand Rathi Wealth stands at around ₹25,091 crore, Angel One at ₹24,929 crore, IIFL Finance at ₹23,266 crore and Edelweiss Financial Services with a market cap of ₹11,016 crore. The rapid rise of Groww in comparison to all these proves that today investors have more faith in digital-first platforms rather than traditional ones.
Easy onboarding, fast pace of onboarding new investors, and growing retail participation in the equity market have taken Groww to great heights in a short span of time. The main reasons behind Groww’s premium valuation are the company’s rapidly growing user base, strong inflows into equity and mutual funds and new valuations being received by consumer-focused fintech companies.
