Why Groww Stock Is Still Rising After Its IPO — What’s Driving the Rally, Valuation Buzz & Future Outlook

Groww’s parent company, Billionbrains Garage Ventures, made one of the most talked-about market debuts in recent times. The IPO already opened with a strong premium, but what surprised everyone is that the rally didn’t stop after Day 1. Even in the sessions that followed, the stock kept climbing steadily, rising over 8% in a single day, and hovering around ₹139 levels soon after listing.

Investors are now asking the big question: Why is Groww still going up even after such a strong listing? And more importantly — is the valuation justified, or is the hype running ahead of reality?

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1. Massive User Growth & Strong Financial Performance

One of the biggest reasons behind the post-IPO surge is Groww’s rapid business growth. The company has turned itself from a fast-scaling startup into a profitable fintech leader. Recent financials show:

Revenue close to the ₹4,000 crore mark

Profit (PAT) around ₹1,800 crore

Consistent expansion of its active customer base


For a fintech company that grew organically without major spending on ads, these numbers look impressive. Investors see Groww as a rare example of a profitable, high-growth digital broking platform.

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2. Strong Market Position in Retail Broking

Groww has captured a major share of India’s retail stock market activity. It has become one of the top choices for new investors due to its simple app design and low-cost model.

With millions of young users entering the stock market, Groww is often seen as the front-runner of India’s retail investing revolution. This market leadership directly boosts confidence among shareholders.

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3. Sentiment Around India’s Fintech Boom

The IPO also arrived at a time when India’s fintech space is growing rapidly. People are investing more, trading more, and using digital financial products at record levels. This strong sector momentum naturally pushes stocks like Groww higher.

Retail investors believe that Groww will gain even more market share as financial literacy, smartphone usage, and digital investing continue to rise.

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4. But Is Groww Overvalued Right Now?

While the rally is exciting, many analysts also point out that Groww’s valuation already reflects very high future expectations. The company earns most of its money from broking fees, which depend heavily on daily trading volumes. This means:

Revenue can fall during slow market conditions

Regulations around brokerage fees can impact margins

The business is sensitive to market volatility


Because of these risks, some experts feel the stock price may be running ahead of fundamentals, at least in the short term.

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5. Future Outlook — Strong but Needs Consistent Execution

If Groww continues to grow its user base, improve monetization (like lending, SIPs, U.S. investing), and maintain profitability, it could remain a strong long-term player.

However, the company needs to:

Diversify revenue beyond broking

Maintain trust among new investors

Navigate regulatory changes

Expand responsibly without losing its low-cost advantage


Overall, the long-term story remains positive, but investors should track quarterly performance closely.


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Top 10 FAQs About Groww IPO & Share Price Rally

1. Why is Groww stock rising after the IPO?

Because of strong financial results, high user growth, and positive market sentiment.

2. What is Groww’s current share price?

It recently traded around ₹139, though prices change intraday.

3. Is Groww profitable?

Yes, with profits around ₹1,800 crore in the latest financial year.

4. What makes Groww attractive to investors?

Large user base, fast growth, brand trust, and dominance in retail broking.

5. Is Groww overvalued?

Some analysts feel the price reflects high expectations, so valuations look stretched.

6. What is the market cap of Groww?

After listing, estimates placed it around ₹70,000–₹80,000 crore.

7. What are Groww’s biggest risks?

Heavy dependence on stock market activity and regulatory changes.

8. Does Groww have strong revenue growth?

Yes, revenue has crossed nearly ₹4,000 crore.

9. Will Groww expand beyond broking?

Yes, it is focusing on SIPs, U.S. markets, lending, and other financial products.

10. Is Groww a good long-term investment?

It has strong potential, but investors should consider valuations and market risk.


Location: New York, NY, USA

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