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ARTICLE AD BOX
Groww’s initial public offering, through which the company plans to raise Rs 6,632 crore, has entered its final day of subscription. At the upper end of the price band, the issue values the investment platform at 33.8 times its FY25 earnings. As per BSE data, the IPO of Groww (Billionbrains Garage Ventures Ltd) has drawn 59.84 crore bids against 36.47 crore shares available. This reflects an overall subscription of 1.64 times at the end of the second day.Retail investors have taken the lead. Shares earmarked for Retail Individual Investors were subscribed 5.02 times, while the portion reserved for Non-Institutional Investors stood at 2.26 times. Qualified Institutional Buyers have taken a more cautious approach, utilising 20% of the shares set aside for them.
Market watchers say this signals a “wait-and-watch” stance ahead of the final day.The subscription window, which opened on November 4, closes today, on November 7.The basis of allotment is scheduled to be finalised on November 10, with the stock likely to list on the BSE and NSE on November 12, according to ET.
Grey market mood softens
In the unregulated grey market, where shares are traded informally before listing, the premium on Groww has slipped.
The IPO is currently quoting a Rs 11 grey market premium, implying a potential listing price of around Rs 111 against its issue price of Rs 100. Earlier, the GMP had been around 14.5%.Market trackers note that the GMP reflects sentiment rather than certainty, and the final listing price may vary.
Fund utilisation and IPO composition
The public issue consists of:
- A fresh issue of Rs 1,060 crore
- An Offer for Sale of Rs 5,572 crore, through which existing shareholders will divest stock
Proceeds from the fresh issue will be channelled towards improving cloud infrastructure, strengthening brand and marketing efforts, and providing capital to its subsidiaries: Groww Creditserv Tech for NBFC activities and Groww Invest Tech for margin trading.Kotak Mahindra Capital, JP Morgan, Citigroup, Axis Capital, and Motilal Oswal Investment Advisors are managing the offering. MUFG Intime is acting as registrar.
What are brokerages saying:
The IPO has earned favourable recommendations from several brokerages:
- SBI Securities has given a “Subscribe” rating, noting Groww’s leadership position with 12.6 million active NSE clients and strong SIP and mutual fund growth, according to ET.
- Anand Rathi has labelled it “Subscribe – Long Term”, indicating confidence in its fundamentals and user engagement.
- SMIFS recommended subscribing for long-term gains, pointing to the business’s scalability and expansion in F&O and mutual funds.
- Bajaj Broking, while taking a neutral (non-rated) position, highlighted Groww’s 42% CAGR in active clients between FY22 and FY25 and pegged valuations at 29.9x FY25 earnings.
- Kunvarji Wealth Solutions advised “Subscribe (Medium to Long Term)” and cited operational efficiency and strong retention.
- Religare Securities (WealthVia Research) described Groww as a “fintech infrastructure company in the making”, assigning a “Subscribe” rating and noting the strategic launch of Groww Creditserv.
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