Groww IPO: Issue To Open On Nov 4, Price Band Set At INR 95-100

SUMMARY

As per the company’s RHP, anchor investor bidding will take place on November 3

The IPO will comprise a fresh issue of up to INR 1,060 Cr and an offer for sale (OFS) of up to 55.72 Cr shares

At the upper end of the price band, the company would be valued at INR 61,735 Cr (about $7 Bn)

Investment tech major Groww’s highly-anticipated IPO will open on November 4 and close on November 7.

As per the company’s RHP, anchor investor bidding will take place on November 3. The IPO will comprise a fresh issue of up to INR 1,060 Cr and an offer for sale (OFS) of up to 55.72 Cr shares. Groww has lowered the OFS component slightly from the earlier proposed 57.4 Cr shares.

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

At the price of INR 100 per share, the total size of the IPO would be over INR 6,600 Cr (about $746.4 Mn).

In terms of financial metrics, the company’s price to earnings ratio (P/E ratio) at INR 100 price stands at 31.35 on the basis of its diluted earnings per share for FY25. At the lower end of the price band, the P/E ratio stands at 29.78.

The cut in the OFS component follows investor Tiger Global, via Internet Fund VI, reducing its offer for sale by 1.3 Cr shares to 5.2 Cr equity shares.

Peak XV Partners, Y-Combinator, Ribbit Capital, Kauffman Fellows, Alkeon Capital Management, Propel Venture Partners and Sequoia Capital have retained their OFS portions as outlined in the DRHP.

At INR 225 Cr, the largest chunk of the unicorn’s IPO proceeds will go towards brand building and performance marketing activities. Groww 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.

On the financial front, Groww reported a 12% increase in its net profit to INR 378.4 Cr in Q1 FY26 from INR 338 Cr in the year-ago quarter. However, operating revenue shrinked 9.6% to INR 904.4 Cr during the quarter under review from INR 1,000.7 Cr a year ago.

In 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.