The financial world is holding its breath as Groww’s IPO enters its final hours with shocking grey market movements. Just three days ago, unofficial trading suggested 14.5% premium. Today? That number has collapsed to 11% – a massive 23% drop that’s sending shockwaves through investor circles.
What’s Happening Right Now
As of 2 PM on the final subscription day:
- GMP (Grey Market Premium) has fallen to Rs 11 per share
- Expected listing price now Rs 111 vs Rs 100 issue price
- Retail portion oversubscribed 5.02 times
- Institutional buyers only using 20% of their quota
The Subscription Battle
The numbers tell a story of divided markets:
| Investor Category | Subscription Rate |
|---|---|
| Retail Investors | 5.02x |
| High-Networth Individuals | 2.26x |
| Institutional Buyers | 0.20x |
“This is classic FOMO vs caution,” says market analyst Priya Sharma. “Retail investors are chasing the fintech dream while big players wait for clearer signals.”
Where Your Money Goes
If you invest Rs 100 per share:
- Rs 21.20 builds cloud infrastructure
- Rs 20.50 strengthens their NBFC arm
- Rs 16.75 boosts margin trading facilities
- Rs 14.38 funds marketing blitzes
The remaining Rs 27.17 goes to selling shareholders and corporate needs.
The Brokerage Divide
Top firms can’t agree on this IPO:
“SUBSCRIBE – Groww’s user growth justifies premium valuation” – SBI Securities
“Neutral stance – Wait for post-listing correction” – Bajaj Broking
Why GMP Matters (And Why It Doesn’t)
The grey market premium acts like a mood ring for IPOs:
- Not regulated – reflects sentiment, not guarantees
- Often changes right until listing day
- Current drop suggests profit-booking by early traders
Market veteran Rakesh Jhunjhunwala Jr. warns: “GMP is a popularity contest, not a valuation tool. Don’t bet your house on it.”
The Deadline Clock
Critical dates to circle:
- Today 5 PM: Final subscription closes
- Nov 10: Share allotment
- Nov 12: BSE/NSE listing
Should You Roll the Dice?
Consider these 4 factors:
- Growth Story: 42% annual client growth since 2022
- Valuation: 33.8x FY25 earnings – steep but not unprecedented
- Market Position: #1 broker with 26% market share
- Risks: Profitability concerns, tech spending needs
As the closing bell approaches, one thing’s clear – this IPO will be remembered either as India’s fintech coming-of-age moment or a cautionary tale about hype cycles. The next 72 hours will write that story.
For real-time updates, track the official GMP tracker on LiveMint.
