Highlights: Groww IPO draws 57% subscription so far – GMP rises a bit ahead of Day 2

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.

Also Read: ‘Our presence in global markets has improved significantly,’ B. Amrish Rau CEO Pine Labs

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.

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

The company’s shares will list on both BSE and NSE, with post-listing trade expected to begin on November 12.

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 IPO follows the SEBI-approved allocation structure-

Qualified Institutional Buyers (QIBs): Up to 75% of the issue

Non-Institutional Investors (NIIs): Up to 15%

Retail Investors: 10%

The price band for the Groww IPO is fixed between Rs 95-100 per share, with a face value of Rs 2 per equity share.

Retail investors can bid for a minimum lot of 150 shares, translating to an investment of Rs 15,000 at the upper end.

Groww’s public issue is opening in today, November 4.

Public subscription: Runs from November 4 to November 7

Allotment date: Expected on November 10

Refunds & demat credits: On November 11

Listing date: Scheduled for November 12 on both BSE and NSE

The total issue size stands at Rs 6,632.30 crore, divided into two parts – a fresh issue of Rs 1,060 crore and an offer for sale (OFS) worth Rs 5,572 crore by existing shareholders and promoters.

Under the OFS, around 55.7 crore equity shares will be offloaded. The issue follows the book-building process, which helps in determining the final price within the approved range.