Hi Brittscr, welcome to the forum!
I am far from an expert but I think I can give you some info. You grandfather brought back the most coveted souvenir of both world wars. It's a great piece of history and having the family connection makes it that much more special.
The last Lugers with the DWM logo on the toggle were made between the world wars, in the Weimar or early Nazi era by DWM or by Mauser using some DWM parts. I think the markings on the front of the grip may be police unit markings, possibly from Dusseldorf. It seems to follow the Prussian police marking instructions of 1922 pretty closely.
I hope this helps. I may be wrong about the unit marking on the grip. Far more knowledgeable members will probably be able to give you more accurate information.
-Jason
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