Groww's ₹6,632 Crore IPO Opens Today: Should You Subscribe?

Billionbrains Garage Ventures Ltd., the parent company of fintech platform Groww, has opened its much-awaited IPO (Initial Public Offering) for subscription starting today, November 4, 2025. The IPO will remain open until Friday, November 7, 2025, giving investors a four-day window to participate.

The IPO is valued at Rs 6,632 crore, with shares priced between Rs 95 and Rs 100 each share. For retail investors, the minimum investment is one lot of 150 shares, translating to Rs 15,000. Investors can apply for multiple lots in multiples of 150 shares.

What Analysts Say

Brokerage firm Arihant Capital has highlighted the robust growth potential for retail participation in India’s markets. It expects the number of investors to nearly double from around 7crore to 12–13 crore in the coming years. With a digital reach covering 98.36% of Indian pin codes, Groww is ideally positioned to ride this wave of financial inclusion.

Groww’s efficient technology stack and asset-light model have helped it scale rapidly while maintaining profitability. Between FY23 and FY25, its revenue surged at an annualized rate of nearly 85%, while profit margins expanded to 45%.

According to Arihant Capital, the IPO’s upper price band of Rs 100 values the company at a price-to-earnings ratio of 33.8 times, based on an EPS of Rs 2.96. The brokerage noted that the valuation appears reasonable and recommended subscribing for potential listing gains.

Anand Rathi, another brokerage house, praised Groww’s focus on trust, transparency and organic growth through customer referrals. It expects the company’s operating leverage and customer stickiness to sustain profitability over the long term. Anand Rathi also pointed out that Groww is expanding into new segments like Margin Trading Facility (MTF), commodity derivatives, API trading, wealth management and bonds to diversify its portfolio and deepen customer engagement.

While valuations are on the higher side, the consent among analysts is optimistic. They see Groww’s combination of strong brand recall, expanding user base and consistent margin growth as an attractive long-term investment. Anand Rathi’s note concluded with a “Subscribe – Long Term” recommendation.

Strong Anchor Support and Investor Confidence

Ahead of the IPO, Groww raised Rs 2,984 crore through its anchor book by allotting 29.84 crore shares at Rs 100 each to more than 100 institutional investors. This anchor round witnessed participation from marquee domestic and global investors such as HDFC Mutual Fund, SBI Mutual Fund, Kotak Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund, Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Tata Mutual Fund, Amundi Funds and ICICI Prudential Mutual Fund.

Prominent foreign investors, including the Government of Singapore, Abu Dhabi Investment Authority, Goldman Sachs, Government Pension Fund Global, Société Générale, Morgan Stanley and even Massachusetts Institute of Technology (MIT), also participated. The scale of participation signals a decisive global vote of confidence in Groww’s business model.

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Groww Grey Market Premium (GMP) Stays Strong

Market observers report that Groww’s shares are trading with a grey market premium (GMP) of about Rs 16.5, which is roughly 17% higher than the issue price. This indicates that the shares might list around Rs 116.5, showing good investor interest. However, experts warn that the GMP can change with market trends & should not be seen as a sure sign of future prices.

IPO Details and Structure

The Bengaluru-based company, backed by Peak XV Partners (formerly Sequoia Capital), Tiger Global and Microsoft CEO Satya Nadella, commands a valuation of Rs 61,736 crore post-issue. The offer includes a fresh issue worth Rs 1,060 crore along with an offer for sale of 55.72 crore shares by existing shareholders.

In terms of allocation, 75% of the issue is reserved for institutional investors, 15% for high-net-worth individuals, and 10% for retail investors. The share allotment is scheduled for November 10 and trading will commence on November 12. JPMorgan Chase & Co., Kotak Mahindra Capital, Citigroup, Axis Bank and Motilal Oswal manage the IPO.

Company Snapshot

Groww has rapidly emerged as one of India’s biggest stockbroking platforms, capturing a 26.3% share of the active NSE client base as of June 2025. The platform serves 12.6 million active users and contributed 45.5% of net new client additions during the past year, more than any other broker.

The company gained a total profit of Rs 1,824.4 crore in FY25, rebounding from a one-time tax-related loss in FY24. With rising profitability, operational resilience and a trusted brand image, Groww stands out as a frontrunner in India’s modern-era fintech ecosystem.

The company’s founders- Lalit Keshre, Harsh Jain, Ishan Bansal and Neeraj Singh hold about 28% of the company. Their shared goal remains to simplify investing for millions of Indians while maintaining transparency and accessibility.

Groww’s IPO showcases a potent blend of institutional confidence, sustained financial performance and promising growth prospects. While valuations leave limited room for short-term upside, analysts believe the company’s expanding product mix and large retail user base provide a strong foundation for long-term value creation.

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