Hold your breath, investors! The grey market premium (GMP) for Groww’s much-anticipated IPO took a wild dip, crashing nearly 70% from a sizzling Rs 16 at its peak down to just Rs 5 before its stock market debut. This means the shares are tracking at only about a 5% premium over the Rs 402 IPO price, signaling some market caution, especially after another new listing, Lenskart, had a lukewarm launch. But don’t count Groww out just yet. Analysts are serving up some hope, expecting the company’s shares to open with a modest gain of around 5-10%. Prashant Tapse of Mehta Equities says, “We expect Groww to list with a modest 5-10% gain, supported by positive market sentiment, but exuberance is likely to be capped due to recent weak debuts like Lenskart.” The frenzy around Groww’s IPO was real. The Rs 2,580 crore issue was oversubscribed 17.6 times overall! Qualified institutional buyers (QIBs) were the biggest fans with a 22 times subscription, while non-institutional and retail investors also showed strong interest. Yet, the tumbling GMP shows that the excitement is cooling off as listing day nears. Nitin Jain, Senior Research Analyst at Bonanza, says, “The pre-listing quote (GMP) for Groww IPO was reported around Rs 6.5 to Rs 17.25 above the IPO price band, with different sources showing some variation in the premium shortly before listing.” This means the price range in the grey market was from Rs 408.5 to Rs 419.25 per share just before launch. What makes Groww special? Founded in 2017 and based in Bengaluru, Groww is one of India’s hottest fintech platforms. It offers newbies and experts alike a simple way to invest in mutual funds, stocks, ETFs, IPOs and derivatives — all through one slick app. With over 10 crore users across smaller and bigger cities, Groww has become a favorite among retail investors. Financially, Groww has turned heads with a jump to Rs 1,824 crore net profit in FY25, on revenues hitting Rs 4,061 crore — a sharp 45% rise. From a bleeding startup to a profitable giant, Groww’s transformation has boosted investor faith in its bright future. But remember, Groww’s valuation is eye-popping at nearly 40 times its FY25 earnings. Experts warn this high price leaves little room for a quick jackpot after listing. Tapse explains, “The IPO was fairly priced in the Rs 95–100 range (adjusted for the split and revaluation metrics) and attracted strong institutional demand due to its scalable digital model and low incremental costs.” For investors lucky to get shares, holding on for the medium to long term is the smart move. Tapse advises, “Groww represents a strong long-term structural story and can act as a proxy for India’s expanding capital market participation.” He adds investors might even want to buy more if prices dip after listing. All the shares issued in this IPO are fresh equity meant to boost Groww’s balance sheet and tech setup. The company plans to spend some of the money on product development, corporate needs, and maybe even acquisitions. The big question: Can Groww’s solid brand and strong numbers beat the recent gloom around new age IPOs? Most agree a small positive listing is likely. But the real magic will depend on how well Groww performs in the coming quarters. Stay tuned and watch this fintech star as it tries to shine bright in India's buzzing capital markets!