[Update] Groww IPO: Issue Oversubscribed 1.64X On Day 2

Update | November 6, 17:50 IST

Groww’s IPO continued to see strong investor interest on day two. The company’s IPO ended the day with an oversubscription of 1.64X, receiving bids for 59.82 Cr shares against 36.47 Cr shares on offer.

Retail individual investors (RIIs) remained the most enthusiastic on the public offering, oversubscribing their quota by 5.02X. These investors placed bids for 33.29 Cr shares against 6.63 Cr shares reserved for them.

Following retail investors, non-institutional investors (NII) segment oversubscribed their quota by 2.26X, bidding for 22.49 Cr shares against the 9.95 Cr shares earmarked for them.

Within this category, NIIs bidding for shares worth in a range of INR 2- 10 Lakh oversubscribed their quota by 3.17X, while NIIs whose bid amount was over INR 10 Lakh oversubscribed their quota by 1.80X.

Meanwhile, interest from qualified institutional buyers (QIBs) remained muted on day two. These investors placed bids for 4.05 Cr shares against the 19.90 Cr shares reserved for them, subscribing their quota by 20%.

Original | November 6,  IST

Groww’s IPO continued to attract steady interest from investors on the second day of bidding. The public issue was subscribed 1.14X at 12:30 IST today, receiving cumulative bids for 41.65 Cr shares against 36.48 Cr shares on offer.

RIIs continued to show strong interest, leading the subscription momentum on Day 2. Their quota was oversubscribed 3.85X, getting bids for 25.53 Cr shares against 6.63 Cr shares reserved.

NIIs segment witnessed a moderate response and was subscribed 1.41X. The segment received bids for 14.11 Cr shares against 9.94 cr shares on offer. 

Within this category, investors bidding for amounts between INR 2 Lakh and INR 10 Lakh led the participation, with their portion oversubscribed 2.18X. The quota reserved for those bidding for more than INR 10 Lakh was subscribed 1.03X.

QIBs continued to show the least interest in the public issue, with their quota subscribed just 10%. They placed bids for 2.07 Cr Cr shares against 19.89 Cr shares on offer. 

Important to mention that Groww raised INR 2,984.5 Cr from anchor investors ahead of the IPO. The list of anchor investors features the likes of Goldman Sachs, Societe Generale, Abu Dhabi Investment Authority, and the Government of Singapore, along with 17 domestic mutual funds. 

Groww IPO closes tomorrow (November 7) and the allotment will be finalised by November 10. Post the closure of the IPO, the fintech company’s shares would tentatively get listed on the bourses on November 12. 

The company plans to raise a total of INR 6,600 Cr via its public offering. The IPO comprises a fresh issue of INR 1,060 Cr and an offer-for-sale (OFS) component of up to 55.72 Cr shares. 

The price band for the IPO is set at INR 95 and INR 100 per share, valuing the company at INR 61,735 Cr (around $7 Bn) at the upper end.

The company intends to use the fresh capital for marketing, bolster its NBFC arm, invest in margin trading subsidiary Groww Invest Tech and fund expenditure towards cloud infrastructure and inorganic growth through unidentified acquisitions.

The OFS will see existing investors such as Tiger Global, Peak XV Partners, Y Combinator, Ribbit Capital, Kauffman Fellows, Alkeon Capital Management, Propel Venture Partners, and Sequoia Capital, among others, offloading their stakes.

On the financial front, the company reported a net profit of INR 378.4 Cr in Q1 FY26, up 12% from INR 338 Cr in the year-ago quarter. However, operating revenue declined 9.6% to INR 904.4 Cr during the quarter under review from INR 1,000.7 Cr in Q1 FY25. 

For FY25, Groww posted a net profit of INR 1,824.4 Cr as against a loss of INR 805.5 Cr in the previous fiscal year. Operating revenue zoomed about 50% to INR 3,901.7 Cr from INR 2,609.3 Cr in FY24.