Why Groww IPO is expected to see only a mutual listing on 12-Nov-2025?
The expected listing of Groww’s IPO seems modest, even though many investors subscribed. Why did the unofficial market price (GMP) drop sharply? What specific reasons point toward limited listing gains for this Groww IPO?
The expectation that the Groww IPO will only have a modest or muted listing when it debuts on November 12, 2025, is largely due to weak market signals.
Here are a few main reasons:
Sharp Drop in Premium: The primary indicator of a modest listing is the Grey Market Premium (GMP). It is the unofficial price at which these shares trade before listing. The GMP for Groww dropped severely, falling by nearly 70% from its peak to around Rs. 5 per share. The issue price band of Groww IPO is Rs. 95 to Rs. 100 per share. The GMP drop means that the investors are getting defensive with this listing.
Valuation Seems High: Many analysts feel the stock is already “fully priced” at the IPO price. High valuation multiples are noted as a key risk for the company. This suggests that there is not much room left for the price to increase significantly on the first day of listing. The pre-IPO P/E is 33.26 and the post-IPO P/E will be 40.79
Weak Market Mood: Investor excitement has been limited partly because other recent technology IPOs, such as Lenskart, had “subdued debuts”. This cautious mood limits expectations for a big listing.
