[Update] Groww IPO: Issue Subscribed 57% On Day 1, Retail Portion Oversubscribed 1.9X

Update | November 4, 17:50 IST

Groww’s IPO ended the first day of bidding with a 57% subscription, receiving bids for 20.63 Cr shares against 36.47 Cr shares on offer. 

Retail investors led the charge, with the portion reserved for them oversubscribed 1.91X. They placed bids for 12.68 Cr shares against 6.63 Cr shares on offer. 

The portion reserved for non-institutional investors (NIIs) was subscribed 59%, getting bids for 5.91 Cr shares against 9.94 Cr shares on offer. 

Qualified institutional buyers (QIBs) didn’t show much interest in the issue on the first day, placing bids for just 2.03 Cr shares against 19.89 Cr reserved. This translated to 10% subscription. 

Original | November 4, 12:19 IST

Investment tech major Groww’s IPO saw a decent start on the Day 1 of bidding, with the issue subscribed 22% till 12:00 IST. It received bids for 8.15 Cr shares as against 36.47 Cr shares on offer.

Retail investors showed the highest interest in the IPO, with the portion reserved for them subscribed 92%. They bid for 6.09 Cr shares against 6.63 Cr shares reserved for them.

The portion reserved for non-institutional investors (NIIs) was subscribed 21%, receiving bids for 2.09 Cr shares against 9.94 Cr shares on offer. 

However, qualified institutional buyers’ (QIBs) quota saw marginal subscription, getting bids for over 79K shares against 19.90 Cr shares on offer. 

Groww’s INR 6,600 Cr 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 company has set a price band of INR 95 to INR 100 for its public issue. At the upper end of the price band, the company would be valued at INR 61,735 Cr (about $7 Bn). 

Tiger Global, Peak XV Partners, Y-Combinator, Ribbit Capital, Kauffman Fellows, Alkeon Capital Management, Propel Venture Partners and Sequoia Capital are among the investors selling their shares as part of the OFS. 

Yesterday, Groww raised INR 2,984.5 Cr from anchor investors, including 17 domestic mutual funds, Goldman Sachs, Societe Generale, Abu Dhabi Investment Authority, Government of Singapore, among others.

The Bengaluru-based company plans to utilise INR 225 Cr from the fresh issue proceeds towards brand building and performance marketing. It plans to infuse INR 205 Cr in NBFC subsidiary Groww Creditserv Technology and INR 167.5 Cr in subsidiary Groww Invest Tech, which provides margin trading facility. 

While INR 152.5 Cr will be used to strengthen cloud infrastructure, the remaining amount has been earmarked for unidentified acquisitions and general corporate purposes.

Founded in 2016 by Harsh Jain, Ishan Bansal Dean, Lalit Keshre, and Neeraj Singh, Groww is a digital brokerage platform which enables trading and investing in equities, mutual funds, ETFs and F&O. Last month, the company forayed into commodities trading. 

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.