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

Groww’s NSE active clients increased from 5.37 million in March 2023 to 12.58 million in June 2025, reflecting strong user growth, as per NSE data. Corresponding industry active clients stood at 35.60 million and 47.89 million, respectively. This translated to a market share expansion from 15.09% in March 2023 to 26.27% in June 2025. During this period, Groww’s active client base rose from 5.65 million in June 2023 to 12.58 million in June 2025, underscoring its growing dominance in the retail broking space.

Groww is among India’s leading mutual fund distribution platforms, holding a 13% market share in SIP inflows as of June 2025, up from 6% in June 2023 and 11% in June 2024. Its retail cash ADTO share across BSE and NSE rose from 12.66% in FY24 to 19.31% in FY25, further reaching 23.66% in the three months ended June 2025. In retail derivatives ADTO, the company’s share increased from 7.6% in FY24 to 11.37% in FY25 and 14.43% in June 2025. Groww also reported an MTF book of Rs 1,035.7 crore as of June 2025, representing a 1.22% market share.

Billionbrains Garage Ventures gives brokerage services, which include stocks and derivatives as well. The company’s products include Mutual Funds, MTF, Credit, and Groww AMC. As of June 2025, the company had 1,415 employees.

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.

“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 IPO comprises a fresh issue of Rs 1,060 Cr and an offer for sale of Rs 5,572 Cr, totaling INR 6,632 Cr. The proceeds from the fresh issue will be used for performance marketing (Rs 400 Cr), tech/inorganic growth (Rs 300 Cr), NBFC capital (Rs 200 Cr), and working capital (Rs 160 Cr). The IPO is priced at a P/E ratio of 41x based on FY25 EPS and EV/EBITDA of 25x TTM. This valuation appears premium compared to listed peers but justified relative to growth potential. With revenue growth at 50% in FY25 and PAT margin improving to 47%, the company is well-positioned to capitalize on the expanding wealth tech market. We assign a “Subscribe” rating,” said Deven Choksey Research in its IPO note.

The Groww IPO hit the primary market on November 4, and investors will have time to subscribe until November 7. The basis of allotment is expected to be completed by November 10, and the stock is likely to make its debut on the BSE and NSE on November 12.

“With revenue growing sharply at an 85% CAGR between FY23 and FY25 and profit margins improving to 45%, it expects to maintain steady growth through organic user additions, high customer retention, and rising average revenue per user. At the upper band of INR 100, the issue is valued at a P/E ratio of 33.84x, based on a EPS of Rs 2.96 per share. We are recommending a “Subscribe for listing gain” rating for this issue,” said Arihant Capital 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,” said Anand Rathi Research in its IPO note.

The Groww IPO on Day 1 of bidding was subscribed 0.57 times in total. The Retail Individual Investors (RII) was fully subscribed at 1.91 times. The Non-Institutional Investors (NII) portion was subscribed 0.59 times, while the Qualified Institutional Buyers (QIB) segment recorded a response at 0.10 times. The Day 2 of bidding process will continue on Nov 6.

“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

Groww’s shares are set to debut on November 12, and analysts view it as a long-term growth story. However, investors should remain cautious about regulatory changes, valuation risks, and market volatility that could influence its post-listing performance. Restrictions on foreign ownership and dependence on market activity also remain factors to monitor.

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