LIVE: Groww IPO draws 57% subscription so far – But is the fintech’s GMP losing steam?

Groww’s growth journey has been supported by leading global investors including Peak XV Partners, Ribbit Capital, Tiger Global, and Y Combinator. These funds have helped the company strengthen its product portfolio, enhance infrastructure, and scale operations to serve a wider audience.

Groww is raising Rs 6,632 cr, comprising a fresh issue of Rs 1,060 crore and an offer for sale of Rs 5,572 crore. Of the total proceeds, Rs 152.5cr will be used for cloud infrastructure, Rs 225 crore for brand and marketing, Rs 205 cr to strengthen the NBFC subsidiary’s capital base, Rs 167.5 crore for funding the margin trading business, and the balance towards inorganic growth and general corporate purposes.

According to Angel One, “the valuation appears steep compared to peers. So we assign a ‘Neutral’ rating for investors with a long-term perspective.”

Groww is raising Rs 6,632 cr, comprising a fresh issue of Rs 1,060 crore and an offer for sale of Rs 5,572 crore. Of the total proceeds, Rs 152.5cr will be used for cloud infrastructure, Rs 225 crore for brand

and marketing, Rs 205 cr to strengthen the NBFC subsidiary’s capital base, Rs 167.5 crore for funding the margin trading business, and the balance towards inorganic growth and general corporate

purposes.

According to Angel One, “the valuation appears steep compared to peers. So we assign a ‘Neutral’ rating for investors with a long-term perspective.”

Groww earns revenue primarily through brokerage income, mutual fund commissions, and distribution of financial products. Despite heavy investments in user acquisition and technology, the company’s core broking business turned profitable in 2024, signaling efficient cost management. The platform’s diversified business mix has also provided stability amid fluctuating market cycles.

Groww’s initial public offering (IPO) is a book-built issue worth Rs 6,632.3 crore, comprising a fresh issue of Rs 1,060 crore and an offer for sale (OFS) of Rs 5,572.3 crore. The issue opened on November 4, 2025, and will close on November 7. The shares are expected to be listed on NSE and BSE on November 12.

According to the company’s filing, proceeds from the fresh issue will go toward business expansion and strengthening technology. Key allocations include Rs 152.5 crore for cloud infrastructure, Rs 225 crore for brand marketing, Rs 205 crore for capital infusion into the non-banking financial company (NBFC) unit, and Rs 167.5 crore for margin trading facility (MTF) businesses. The rest will be used for strategic investments and corporate purposes.

At the heart of Groww’s business lies its cloud-based technology infrastructure, distributed across multiple global cloud providers. This ensures stability and scalability even during high trading volumes. The company frequently introduces new features, often based on user feedback, to enhance experience and improve reliability for its investors.

As of June 2025, Groww stands as India’s largest investment platform by active users on the National Stock Exchange (NSE). Its wide product mix and digital-first approach have helped it appeal to new-age investors – particularly those entering financial markets for the first time. This steady expansion has positioned Groww among India’s top fintech disruptors in the retail investing space.

Groww operates as a direct-to-customer (D2C) investment platform, allowing individuals to invest in mutual funds, equities, exchange-traded funds (ETFs), bonds, and commodities — all from one app. The platform’s core idea is to make investing simple and transparent for first-time users. Over the years, Groww’s focus on ease of access has helped it attract millions of customers across India’s tier-1 and tier-2 cities.

Groww is a well-known and preferred brand for investing across cities, towns and villages in India. The company has a high customer retention, engagement and price in-elasticity. Plus, the application has a customer-friendly design for enhancing investing experience along with an in-house technology stack to deliver a differentiated experience at low cost.

MUFG Intime is the registrar for the issue, responsible for processing applications and finalizing allotments.

Groww has been a leading player in India’s retail investing space and, according to Google Trends, recorded the highest search interest in the country among the top 10 brokers (by NSE active clients, as per NSE data) during Fiscal 2025. Among active users who have completed three years on the platform, 77.7% have remained with Groww.

Founded in 2016 by Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh – all former Flipkart employees – Groww started as an online platform allowing investors to invest in mutual funds through a mobile-first interface.

Over time, it expanded to offer stocks, derivatives, ETFs, sovereign gold bonds, and IPO investments, becoming one of India’s most-used investment apps.

As of June 2025, Groww was India’s largest investment platform by active NSE clients, ahead of traditional brokerages.

The company’s promoters -Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh will each sell 10 lakh equity shares as part of the public issue.

Groww’s initial public offering (IPO) drew a moderate response on the first day of bidding, with overall subscription reaching 57 per cent. The retail investor quota was fully booked early, receiving 1.91 times bids, while the non-institutional investor (NII) segment saw 59 per cent subscription. The qualified institutional buyers (QIB) portion, however, attracted only 10 per cent of the offered shares so far.

The IPO of Billionbrains Garage Ventures Ltd, the parent firm of stockbroking platform Groww, opened for subscription on November 4 and will close on November 7. The company has fixed the price band at Rs 95–100 per share, targeting a market valuation of around Rs 61,700 crore (about USD 7 billion).

Groww is a well-known and preferred brand for investing across cities, towns and villages in India. The company has a high customer retention, engagement and price in-elasticity. Plus, the application has a customer-friendly design for enhancing investing experience along with an in-house technology stack to deliver a differentiated experience at low cost.

The company offers a platform to invest in mutual funds, stocks, F&O, ETFs, IPOs, digital gold, and U.S. stocks. Its mobile app is particularly popular among mutual fund investors. Groww also offers value-added services such as Margin Trading Facility (MTF), algorithmic trading, New Fund Offers (NFOs), and credit solutions.

“At the upper price band of Rs 100 per share, the company is valued at a post-issue P/E of 40.79x, the valuation appears steep compared to peers. So we assign a “Neutral” rating for investors with a long-term perspective,” said Angel One in its IPO note

The Groww IPO saw a subscription of 0.35 times so far on Day 1, with bidding activity still underway.

According to the data, the retail investor segment was subscribed 1.41 times. The non-institutional investor (NII) category saw a subscription of 0.35 times, while the Qualified Institutional Buyers (QIB) portion is yet to receive any bids.

“From a valuation perspective, the Company is currently valued at P/E multiple of 29.9x based on its FY25 earnings,” said Bajaj Broking in its IPO note.

“At the upper price band, the company is valued at 33.8x FY25 P/E, implying a post-issue market capitalization of Rs 6,17,360 million. Groww seeks to strengthen its pan-India brand by focusing on trust, transparency, and financial inclusion while expanding its customer base organically through word-of-mouth and operating leverage. The company also plans to diversify its product suite with offerings like MTF, commodity derivatives, API trading, wealth management (‘W’), LAS, and Bonds to enhance engagement, wallet share, and AARPU. Considering these factors, the IPO appears fully priced and is rated “Subscribe – Long Term,” aid Anand Rathi Research in its IPO note.

The Offer for Sale (OFS) in the Groww IPO includes share sales by both promoter shareholders and other existing investors. The company’s promoters -Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh will each sell 10 lakh equity shares as part of the public issue.

Groww is an online investment platform that allows users to buy and sell stocks easily. Apart from stock trading, it also offers access to IPOs, derivatives, bonds, mutual funds including its own Groww Mutual Fund and even personal loans.

In simple terms, Groww works as a direct-to-customer digital platform focused on making investing simple and transparent. The company says its goal is to help users grow their wealth through a platform built on speed, simplicity, and trust, backed by its own technology and user-friendly design.

According to data from Redseer, Groww is currently India’s largest and fastest-growing investment platform by active users on the NSE. As mentioned in its DRHP, the company had 12.6 million active clients on the NSE as of June 2025.

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The Groww IPO has received a subscription of 0.19 times so far on Day 1, with bidding activity still underway. The issue has seen the retail investor portion subscribed 0.77 times, while the NII category has been booked 0.18 times. The QIB segment is yet to see participation.

Groww has been a leading player in India’s retail investing space and, according to Google Trends, recorded the highest search interest in the country among the top 10 brokers (by NSE active clients, as per NSE data) during Fiscal 2025. Among active users who have completed three years on the platform, 77.7% have remained with Groww.

The Rs 5,572 crore OFS allows existing shareholders, including founders and early investors, to partially exit or monetize holdings.

No funds from this portion will go to the company itself; instead, it provides liquidity for current investors while enabling a broader public shareholding base.

Funds raised from the fresh issue (Rs 1,060 crore) will be used primarily for:

Technology upgradation and platform security

Brand building and marketing initiatives

Expanding NBFC operations, including margin trade funding and loan against securities

The Groww IPO opened for public subscription today, November 4, at 10 a.m. The issue will remain open for bidding until November 7. Investors can subscribe to the much-awaited mainboard IPO during this three-day window as the Bengaluru-based online investment platform looks to raise funds.

Groww operates in India’s growing digital brokerage space, competing with platforms like Zerodha, Upstox, and Angel One.

Its simple digital onboarding and wide investment options have helped it attract both new and experienced investors.

As of June 2025, Groww led the market in active clients, reflecting its rapid penetration in tier-2 and tier-3 cities.

The IPO is managed by a consortium of top investment banks, including Kotak Mahindra Capital, J.P. Morgan India, Citigroup Global Markets, Axis Capital, and Motilal Oswal.

Their role includes managing subscriptions, pricing, and allotment coordination with institutional investors.