The IPO will remain open for three days, closing on November 7. Strong retail investor interest and a grey market premium (GMP) of around 18% signal positive listing expectations.
Groww IPO Subscription Update:
As of 11:10 AM on Day 1, the Groww IPO has been subscribed 24% overall, according to BSE data.
Retail Individual Investors (RIIs) have subscribed 96% of the 6.63 crore shares were allocated to them.
Non-Institutional Investors (NIIs) have subscribed to 22% of the 9.94 crore shares were offered. Qualified Institutional Buyers (QIBs) have not yet placed any bids for the 19.89 crore shares reserved for them, which could suggest institutional investors are waiting to assess market sentiment before committing.
Groww IPO Grey Market Premium (GMP) Today:
On November 4, the Groww IPO was seen trading in the grey market at a premium of Rs 18, which is 18% above its issue price of Rs 100. This suggests that the IPO’s estimated listing price could be around Rs 118, reflecting strong demand and positive market sentiment ahead of the official listing.
IPO Structure and Use of Proceeds
The Groww IPO comprises a fresh issue of Rs 1,060 crore and an Offer for Sale (OFS) of Rs 5,572 crore by existing shareholders. Funds raised from the fresh issue are intended for investments in cloud infrastructure, brand-building and marketing initiatives, and capital infusion into subsidiaries Groww Creditserv Tech (NBFC operations) and Groww Invest Tech (margin trading business).
The issue is being managed by lead managers Kotak Mahindra Capital, JP Morgan, Citigroup, Axis Capital, and Motilal Oswal Investment Advisors, with MUFG Intime appointed as the registrar.
Bidding for the Groww IPO opened on November 4 and will close on November 7. Allotment is expected to be finalised on November 10, with a tentative listing on the BSE and NSE scheduled for November 12.
A Digital-First Market Leader
Founded in 2017 by former Flipkart executives Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, Groww has emerged as India’s largest retail investing platform, with 47.9 million active NSE users as of June 2025—a ninefold increase since 2016. Headquartered in Bengaluru, the company provides a direct-to-consumer digital platform enabling investments and trading in stocks, mutual funds, derivatives, bonds, ETFs, IPOs, and digital gold, alongside margin trading and personal loans.
Groww is widely recognised for its intuitive interface, transparent pricing, and technology-driven scalability. Its reach spans over 98% of Indian pin codes, with 81% of active users located outside the top six cities, highlighting its deep penetration into the retail market.
Financials and Performance
In FY25, Groww reported revenue from operations of Rs 3,901 crore, up 49% year-on-year, and a profit after tax (PAT) of Rs 1,824 crore, marking a strong turnaround from prior losses. EBITDA margin improved to 60.8%, reflecting the efficiency of its asset-light business model and strong customer retention. Approximately 78% of new users were acquired organically, reducing marketing costs and boosting profitability.
Groww serves a diversified customer base, including both aspirational investors (with assets under Rs 25 lakh) and affluent users, who generate higher average revenue per user (ARPU). ARPU increased to Rs 3,339 in FY25 from Rs 2,541 in FY23, demonstrating growing monetisation across its platform.
Premium Valuation Backed by Growth Potential
At the top end of the price band, Groww commands a valuation of 33.8x FY25 P/E, higher than traditional peers such as Angel One (19x) and Anand Rathi Wealth (25x). This premium reflects its dominant retail franchise, robust in-house technology, and consistent user growth.
“While valuations may seem elevated in the short term, Groww’s strong fundamentals and high customer retention make it an attractive long-term opportunity,” noted Anand Rathi Research. The brokerage expects the company to benefit from India’s rising financialization, with only around 5% of adults holding active demat accounts, indicating significant room for expansion. Anand Rathi has assigned a “Subscribe-Long Term” rating for the IPO.
Potential risks include regulatory tightening around F&O trading, high dependence on brokerage income (79.5% of FY25 revenue), and sensitivity to market volatility.
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