Groww IPO Day 2 GMP Live: Deven Choksey Research on IPO valuation and outlook
Deven Choksey Research noted that the IPO includes a fresh issue of Rs 1,060 crore and an offer for sale (OFS) of Rs 5,572 crore, aggregating to Rs 6,632 crore. Proceeds from the fresh issue are earmarked for performance marketing (Rs 400 crore), technology and inorganic growth (Rs 300 crore), NBFC capital (Rs 200 crore), and working capital (Rs 160 crore).
The brokerage stated that the IPO is priced at a P/E ratio of 41x based on FY25 EPS and an EV/EBITDA of 25x TTM. While this valuation appears premium compared to listed peers, it is considered justified given the company’s growth potential. With revenue growth of 50% in FY25 and PAT margins improving to 47%, the company is well-placed to benefit from the expanding wealth tech market. The brokerage assigned a “Subscribe” rating to the issue.
