Groww IPO draws 17.6X subscription on final day as institutional demand surges
Groww's IPO, which was already fully booked by mid-day on day two, was initially driven by retail participation. Individual investors placed bids for 62.54 crore shares, or 9.43 times the 6.63 crore reserved for them.
Billionbrains Garage Ventures Ltd., the parent company of investment platform Groww, saw its initial public offering (IPO) oversubscribed 17.6 times on the final day of subscription, powered by a late surge in demand from institutional investors.
By market close, total bids stood at about 641.87 crore shares against 36.47 crore shares on offer.
Qualified institutional buyers (QIBs) led the rally, bidding for 438.04 crore shares against their quota of 19.89 crore, translating to 22.02 times subscription. Foreign institutions accounted for around 242.53 crore shares, while domestic financial institutions and mutual funds together added roughly 162 crore.
The IPO, which was already fully booked by mid-day on day two, was initially driven by retail participation. Individual investors placed bids for 62.54 crore shares, or 9.43 times the 6.63 crore reserved for them.
Among non-institutional investors, demand was particularly sharp in the high-value segment. Bidders applying for more than Rs 10 lakh worth of shares sought 107.98 crore shares against 6.63 crore available, a 16.28x subscription.
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 2,985 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