Groww, a popular online investment platform, kicks off its massive initial public offering today, aiming to raise Rs 6,632 crore. The company already secured over Rs 2,984 crore from anchor investors, setting the stage for strong interest from retail and institutional buyers.
This IPO marks a key milestone for Groww, which has grown rapidly in India’s fintech space. With a price band of Rs 95 to Rs 100 per share, the offering includes a fresh issue and shares sold by existing investors.
Key Details of Groww IPO
The IPO opens for subscription on November 4 and closes on November 7, with shares expected to list on stock exchanges around November 12. Groww plans to use the funds for technology upgrades and business expansion.
This public offering values the company at about Rs 61,700 crore at the upper price band. It consists of a fresh issue of Rs 1,060 crore and an offer for sale of over 55 crore shares worth Rs 5,572 crore.
Investors can apply in lots of 150 shares, making the minimum investment around Rs 15,000 at the top end. The retail portion is set at 10 percent, giving everyday investors a chance to join in.
Here are some essential IPO highlights:
- Price Band: Rs 95 to Rs 100 per share
- Lot Size: 150 shares
- Issue Size: Rs 6,632 crore total
- Fresh Issue: Rs 1,060 crore
- Offer for Sale: Rs 5,572 crore
Strong Anchor Investor Support
Groww drew huge interest from big-name investors before the public opening. Over 100 anchor investors, including global funds like the Abu Dhabi Investment Authority and the Government of Singapore, poured in Rs 2,984 crore.
This anchor round covered nearly 45 percent of the total IPO size. Domestic mutual funds such as HDFC, SBI, and Kotak also participated, showing confidence in Groww’s growth story.
The anchor book was subscribed 15 times, with demand reaching Rs 50,000 crore against the available Rs 2,950 crore slot. Such robust response often signals positive momentum for the rest of the subscription period.
Experts say this strong start could boost retail participation, as anchor investments from reputed names build trust.
Groww’s Journey and Business Model
Founded in 2016, Groww started as a mutual fund investment app and expanded into stocks, gold, and other financial products. It now boasts millions of users, making it one of India’s top brokerage platforms.
The company focuses on user-friendly tech to simplify investing for young Indians. Its app handles massive trading volumes without glitches, thanks to heavy spending on servers and software.
Groww recently acquired a wealth tech startup to strengthen its offerings. This move aligns with its goal to become a full-service financial hub.
In fiscal year 2025, Groww reported revenue of Rs 4,062 crore, up 31 percent from the previous year. It turned profitable with a net profit of Rs 1,824 crore, a sharp turnaround from earlier losses.
For the first quarter of fiscal 2026, revenue hit Rs 949 crore, with profits at Rs 378 crore. These numbers highlight its scalable, asset-light model in the competitive fintech market.
Financial Performance at a Glance
Groww’s financials show steady growth and improving margins. Below is a quick table summarizing key figures:
| Fiscal Period | Revenue (Rs Crore) | Net Profit (Rs Crore) | Key Notes |
|---|---|---|---|
| FY2024 | 3,100 | -805 | Focused on expansion |
| FY2025 | 4,062 | 1,824 | Achieved profitability |
| Q1 FY2026 | 949 | 378 | Strong quarterly growth |
This table illustrates the company’s shift from losses to profits, driven by higher user engagement and cost controls.
Analysts praise Groww for its low customer acquisition costs and high retention rates. Compared to peers, it spends efficiently on marketing while scaling operations.
Market Reaction and Grey Market Premium
As the IPO opens today, early subscription data shows retail investors leading the charge. By mid-morning, the issue was subscribed about 12 percent overall, with retail portions filling up faster.
The grey market premium stands at Rs 17, suggesting shares could list at a 17 percent gain over the upper price band. This reflects optimism amid a bullish stock market.
However, some experts caution about high valuations. At Rs 100 per share, Groww seeks a price-to-earnings ratio around 70 times, which is steep for a fintech firm.
Recent IPOs in the sector, like those from other digital brokers, have seen mixed listing gains. Market volatility from global events could influence the outcome.
Investors should weigh Groww’s strong fundamentals against broader economic trends, such as interest rate changes and regulatory shifts in finance.
What This Means for Investors
For potential investors, Groww offers exposure to India’s booming digital economy. The platform’s focus on tech innovation positions it well for future growth, especially with rising smartphone use.
Risks include competition from established players and possible regulatory changes in brokerage fees. Still, its profitable track record sets it apart from many startups.
Before applying, check your eligibility and consult financial advisors. The allotment date is around November 11, with refunds processed soon after.
In summary, this IPO could be a game-changer for Groww and the fintech space. Share your thoughts on whether you’ll apply, and spread the word if you found this helpful.
