Groww has attracted bids worth Rs 50,000 crore from anchor investors ahead of the opening of its initial public offering (IPO) for public subscription on Tuesday, according to reports. At the upper end of the price band of Rs 95-100, the anchor book is expected to be at Rs 2,950-3,000 crore.
Close to 40 investors, including domestic banks, large mutual funds and foreign portfolio investors, participated in the anchor investment round, reports said. The participants are: SBI Mutual Fund, major US investors Sequoia Capital, Dragoneer Investment Group, and Coatue Management, and three large sovereign funds – Norway’s Norges Bank Investment Management, Abu Dhabi Investment Authority and GIC of Singapore.
The IPO, which closes on Friday, will rank among the largest offerings so far in 2025, following floats by Tata Capital, LG Electronics India and HDB Financial.
The allotment of shares will be finalised by November 10 while shares of the company will be available for trading on the BSE and NSE from November 12.
The Rs 6,632-crore IPO comprises a fresh issue of 106 million equity shares aggregating to Rs 1,060 crore and an offer for sale of 557.2 million equity shares, aggregating to Rs 5,572.3 crore.
In a recent report, Nuvama said it believes apart from competitive pricing, technology and user interface are key factors driving Groww’s success. “Besides broking, Groww has expanded into lending (MTF, LAS, personal loans), asset and wealth management. The insurance distribution businesses is yet to scale up.”
Nuvama expects Groww to be less hurt by any reduced F&O trading. “Groww’s activation rates over FY24–Q1FY26 are at 33%-plus, driving down CAC per active client to just Rs 1,441 in FY25, yielding strong EBIDTA margin of 59.7%,” it said.