Groww Raises INR 2,984.5 Cr From Anchor Investors

SUMMARY

Anchor investors subscribed to 29.84 Cr equity shares of the company at a price of INR 100 apiece

In this, 13.90 Cr equity shares, or 46.6% of the anchor round, were lapped up by 17 domestic mutual funds, including HDFC, Kotak, SBI, Axis Bank, Aditya Birla Sun Life, Motilal Oswal, and Mirae Asset

Other investors who participated in the anchor round included Goldman Sachs, Societe Generale, ADIA, Government of Singapore, MIT, Steadview Capital

Fintech major Groww has raised INR 2,984.5 Cr from anchor investors as its initial public offering (IPO) opens for bidding later today. Anchor investors subscribed to 29.84 Cr equity shares of the company at a price of INR 100 apiece.

Of these, 13.90 Cr equity shares, or 46.6% of the anchor round, were lapped up by 17 domestic mutual funds, including HDFC, Kotak, SBI, Axis Bank, Aditya Birla Sun Life, Motilal Oswal, and Mirae Asset.

Besides, other investors who participated in the anchor round included Goldman Sachs, Societe Generale, ADIA (Abu Dhabi Investment Authority), Government of Singapore, MIT (Massachusetts Institute of Technology), Steadview Capital, Ghisallo Capital Management, and Founder Collective.

The three-day IPO closes on Friday. The company is expected to make its public market debut on November 12. Groww has set a price band of INR 95 to INR 100 for its public offering. The IPO will comprise a fresh issue of up to INR 1,060 Cr and an offer for sale (OFS) of shares worth INR 5,572 Cr.

At the upper end of the price band, the total size of the IPO would be over INR 6,600 Cr (about $746.4 Mn). Groww will be valued at about $7 Bn (INR 61,735 Cr) at the upper end of the price band.

Its P/E ratio at the upper end 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.

In Q1 FY26, Groww reported a 12% YoY increase in net profit to INR 378.4 Cr. Operating revenue declined 9.6% YoY to INR 904.4 Cr.

It posted a net profit of INR 1,824.4 Cr in FY25 against a loss of INR 805.5 Cr in FY24. Its top line zoomed 50% YoY to INR 3,901.7 Cr in FY25.

The company plans to utilise the fresh capital raised from the IPO towards marketing, strengthening the cash reserves of its NBFC arm, as well as improving its cloud infrastructure. Meanwhile, early investors like Peak XV Partners, Y-Combinator, Ribbit Capital would be offloading shares via the IPO.