Investors are aggressively chasing unlisted shares of the Bengaluru-based firm at valuations that go well beyond its last transacted levels, providing a glimpse into the heightened expectations around its upcoming IPO.
Groww, which filed an updated draft prospectus with Sebi for a Rs 6,000-7,000 crore IPO, is aiming for a November listing at a valuation of $7-9 billion. The offer includes a fresh issue worth Rs 1,060 crore alongside a mammoth offer for sale (OFS) of nearly Rs 5,000-6,000 crore by early backers such as Peak XV Partners, Ribbit Capital, Y Combinator, Tiger Global, and Kauffman Fellows Fund.
The four co-founders, Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, will also pare a sliver of their stakes. But even before the IPO opens, activity in the secondary market is painting an even richer picture.
“Basically private markets are seeing heightened activity around Groww,” said Tejas, Vice President – Marketplace at Qapita.
“We note that while the last exercised option prices were around Rs 98 or lower, sellers (employees and ex-employees mostly) in the secondary space are quoting levels upwards of Rs 125 – which already pegs the company at close to an $8.75 billion valuation.”At these levels, investors in the shadow market are effectively valuing Groww near the upper end of its IPO target band. The rush reflects both optimism around India’s booming retail participation in equities and the platform’s rapid financial strides.Groww reported a net profit of Rs 1,824 crore in FY25 and Rs 378 crore in the June quarter of FY26, with revenues climbing 31% year-on-year to Rs 4,056 crore.
The company has also expanded aggressively into adjacent verticals like wealth management, commodities, margin trading facilities (MTF), and loans against shares, giving it more levers to drive growth beyond its core equity broking business.
Still, experts caution that secondary trades at elevated prices could distort expectations ahead of the listing.
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“We remain cautious and have been advising our clients not to rush into these levels, which, in our view, appear inflated and eats into the upside for an incoming investor who would have stood to gain for taking risk and giving liquidity to a seller who has to work with market risks,” Tejas added.
This dynamic, he said, reflects a broader trend in India’s fast-evolving private market ecosystem. With new liquidity channels opening up, sellers are often tempted to anchor their asking price to potential listing valuations, rather than allowing the market to naturally discover fair levels.
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For prospective IPO investors, while Groww remains one of the strongest fintech plays in India, entering at overheated valuations in the unlisted space could leave little room for upside.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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