Groww IPO fully subscribed on day 2, propped up by retail demand
Groww's 364.8 million share offering has attracted bids for 366.8 million shares so far, achieving a subscription ratio of 1.01 times.
The IPO of Billionbrains Garage Ventures Ltd, the parent company of Groww, was fully subscribed by mid-day on day two, driven almost entirely by enthusiastic retail investors.
On Thursday, the 364.8 million share offering attracted bids for 366.8 million shares so far, achieving a subscription ratio of 1.01 times.
Retail individual investors have oversubscribed their portion by 3.4 times, submitting bids for 226.2 million shares against an offer of 66.3 million. Nearly 88% of retail bids came in at the cut-off price, suggesting strong demand at the upper end of the price band.
Non-institutional investors have subscribed 1.21 times their allocation overall. Smaller non-institutional bidders, applying for amounts between Rs 200,000 and Rs 10 lakh, oversubscribed their segment by 1.89 times, while larger non-institutional investors applying for more than 1 million rupees subscribed 0.86 times their portion.
Qualified institutional buyers have so far taken up just 10% of their allocated portion, with bids for only 20.5 million shares against an offer of 198.97 million. Mutual funds have accounted for nearly all the institutional interest, with bids of 20 million shares.
The company locked in heavy support from global and domestic institutions through the anchor book, allocating 298.45 million shares at Rs 100 apiece, raising Rs 2985 crore ahead of the offering.
Large asset managers, including Kotak Flexicap Fund, Nippon India Multi Cap Fund, Government Pension Fund Global, Abu Dhabi Investment Authority, and Goldman Sachs, took sizable positions. The Government of Singapore also emerged as one of the largest anchor allocations.
Among Indian fund houses, Kotak Flexicap Fund received nearly 15 million shares, while Nippon India Multi Cap Fund and Government Pension Fund Global each secured almost 16 million units. Additional allocations were made to funds managed by SBI, Aditya Birla Sun Life, Motilal Oswal, Mirae Asset, Tata, Bandhan, HSBC, Mahindra Manulife, and Bajaj Finserv.
Groww has set a price band of Rs 95 to Rs 100 a share for its initial public offering (IPO), seeking a valuation of about Rs 61,736 crore. The share sale comprises a Rs 1,060 crore fresh issue and an offer for sale (OFS) of Rs 5,572.3 crore, giving existing investors a sizeable liquidity event.
That makes the primary issuance just 16% of the total issue size, with the remainder enabling venture backers, such as Peak XV Partners, Ribbit Capital, YC Holdings, and Alkeon Capital, to pare stakes.
If fully subscribed, Groww’s IPO would rank among India’s largest fintech listings since Paytm’s debut in 2021.
Billionbrains Garage reported a nearly threefold increase in net profit to Rs 1,819 crore in FY25. In comparison, revenue soared 31% year-on-year to Rs 4,056 crore, according to a document seen by YourStory.
Founded in 2016, Tiger Global-backed Groww emerged as the market leader in stock broking in 2023. It has since retained this position, commanding more than a fourth of the market share by active clients.
Edited by Suman Singh