The initial public offering (IPO) of Billionbrains Garage Ventures, the promoter of India’s largest brokerage Groww, closed the final day of bidding with its float oversubscribed 17.6 times.
While all categories were fully subscribed, the QIB portion drew the most interest, with 22.02 times the bids. The NII portion was bid 14.20 times, and the retail investors portion saw 9.4 times the bids.
“The issue saw a strong participation from across all categories, reflecting deep institutional and retail confidence and was successfully oversubscribed,” said Groww’s press note.
Earlier, three large sovereign funds — Abu Dhabi Investment Authority (ADIA), the Government of Singapore and the Monetary Authority of Singapore (GIC), and Norway’s Government Pension Fund Global — joined as IPO anchor investors. Goldman Sachs, Morgan Stanley, Societe Generale, and Sequoia Capital also participated.
The price per share was set between Rs 95 and Rs 100. The total IPO size is Rs 6,632.30 crore, comprising a fresh issue of Rs 1,060 crore and an offer for sale (OFS) of Rs 5,572.30 crore by existing shareholders.
Some of the investors who sold via the OFS included Peak VI Partners Investments, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI, Kauffman Fellows Fund, and Sequoia Capital Global Growth Fund III. Microsoft CEO Satya Nadella is also an investor.
The issuance is the largest ever for a brokerage in Indian capital markets, with an estimated valuation of around Rs 62,000 crore. This surpasses the market capitalisation of Motilal Oswal, currently the largest publicly traded brokerage, followed by Nuvama and Angel One.
The funds raised will primarily be used for technology upgrades, branding, and margin financing, Lalit Keshre, Groww’s co-founder and CEO, had said.
Post-IPO, Groww’s growth focus will be on wealth management, loan against shares (LAS), and commodity trading. The brokerage will also partner with banks for LAS.