Each equity share carries a face value of Rs 2.
The company’s IPO will include a combination of a fresh issue and an offer for sale by existing shareholders, aiming to provide investors with an opportunity to participate in the company’s next phase of growth.
As per the Red Herring Prospectus, the floor price and the cap price are 47.50 and 50 times the face value of the equity shares, respectively. Bids can be placed for a minimum of 150 equity shares and in multiples of 150 thereafter.
Groww IPO size and components
The IPO will comprise a fresh issue of equity shares by the company aggregating up to Rs 1,060 crore. In addition to the fresh issue, there will be an offer for sale (OFS) of up to 55,72,30,051 equity shares by existing shareholders.
These include several early-stage investors who are partially exiting their holdings as part of the public issue.
The offer for sale consists of equity shares of face value Rs 2 each and will be offered at the determined offer price within the set price band. The combined offer is structured to allow both capital raising by the company and partial exits for existing investors.
Top-selling shareholders in Groww IPO
The offer for sale includes participation from some of Groww’s early backers and prominent venture capital firms. The top 10 selling shareholders are Peak XV Partners Investments VI-1, YC Holdings II, LLC, Ribbit Capital V, L.P., GW-E Ribbit Opportunity V, LLC, and Internet Fund VI Pte. Ltd., among others.
Each of these shareholders is categorized as an “Investor Selling Shareholder,” meaning they are existing investors divesting a portion of their equity in the company through the public issue.
Groww IPO timeline and key dates
The bidding process for anchor investors is scheduled to begin on Monday, November 3. The public bid/offer will open on Tuesday, November 4, and close on Friday, November 7.
Following the closure of the bidding period, the basis of allotment will be finalized on or about Monday, November 10.
Refunds to anchor investors and the unblocking of funds are expected to begin on or around Tuesday, November 11. Credit of equity shares to the respective depository accounts is also expected on the same date.
The trading of Groww’s equity shares on the stock exchange is planned to commence on or about Wednesday, November 12.
Groww IPO valuation
At the upper end of the price band, the implied price-to-earnings (P/E) ratio is 31.35 times based on diluted earnings per share for fiscal year 2025. At the lower end of the price band, the P/E ratio is 29.78 times.
These figures are stated in the Red Herring Prospectus and are based on projected financials for the upcoming fiscal year.
In comparison to the industry average, Groww’s P/E ratio at the upper end of the band is below the average peer group P/E ratio of 40.77 times for fiscal 2025.
Allocation structure for Groww IPO
The IPO will follow a book-building process. According to the offer document, not less than 75% of the net offer shall be allocated to Qualified Institutional Buyers (QIBs). The Non-Institutional Investor (NII) portion is capped at not more than 15% of the offer, while the Retail Individual Investor (RII) portion will be not more than 10% of the offer.
This allocation structure is in line with regulatory requirements and is designed to ensure broad-based participation from different investor classes, including institutions, HNIs, and retail investors.
Book running lead managers of Groww IPO
The Book Running Lead Managers (BRLMs) for the issue include Kotak Mahindra Capital Company Limited, J.P. Morgan India, Citigroup Global Markets India, Axis Capital, and Motilal Oswal Investment Advisors.
The registrar of the issue is MUFG Intime India, formerly known as Link Intime India. These entities will oversee the issue management, investor servicing, and post-issue formalities as part of the IPO process.
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