I want to setup openvpn in such a way that i can place clients in different groups and give each group a private subnet (push the addresses to clients when they connect to the openvpn server) where they are visible to each other but not to the clients on other subnets. How do i proceed?

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Short answer: your OpenVPN server will be a router. You can control what subnet goes where with careful application of iptables rules on the OpenVPN server.

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