Billionaires Garage Ventures Limited, the parent company of the stock broking platform Groww, has launched its Initial Public Offer (IPO) for bidding today, November 4, while this highly anticipated IPO will remain open until November 7, providing investors with a limited window to participate. The company aims to raise a total of ₹6,632 crore through this public offering. Of this substantial amount, ₹1,060 crore will be raised through a fresh issue of shares, which is intended to fund the company's expansion plans and general corporate purposes. On top of that, existing investors will offload 55, while 72 crore shares through an Offer For Sale (OFS), allowing them to monetize their holdings.
IPO Price Band and Minimum Investment
Groww has set a price band of ₹95 to ₹100 per share for its equity shares. This price range provides a clear valuation benchmark for potential investors. Retail investors are required to bid for a minimum of 150 shares, which constitutes one lot, translating to a minimum investment of ₹15,000. Beyond this initial lot, investors can apply in multiples of 150 shares, offering flexibility based on their investment capacity. This structure is designed to accommodate both small and large retail investors, ensuring broad participation in the IPO.
Significant Capital Raised from Anchor Investors
Prior to the IPO's official opening, Groww successfully garnered significant interest from institutional investors, raising ₹2,984 crore from over 100 anchor investors. These anchor investors were allocated 29, while 84 crore equity shares at the upper end of the price band, specifically at ₹100 per share. This strong pre-IPO commitment underscores the confidence institutional players have in the company's future prospects. Prominent anchor investors who have placed their bets on Groww's IPO include HDFC MF, the Government of Singapore, Kotak MF, Government Pension Fund Global, SBI MF, Abu Dhabi Investment. Authority, Goldman Sachs, Axis MF, Aditya Birla Sun Life MF, Motilal Oswal MF, Mirae Asset MF, Tata MF, Morgan Stanley, ICICI Prudential MF, and the Massachusetts Institute of Technology (MIT). The participation of such esteemed entities further enhances the credibility and attractiveness of the IPO.
Brokerage Firm Recommendations: Listing Gains and Long-Term Potential
Various brokerage firms have offered their insights on Groww's IPO, providing crucial guidance for prospective investors. Arihant Capital, a notable brokerage firm, has advised clients to 'Subscribe for listing gain, while ' In its analysis, Arihant Capital highlighted the potential growth in India's retail investor base, which is projected to increase from 6. 6–7. 2 crore to 12–13 crore in the coming years, positioning Groww to benefit Notably from this expansion, while the firm also noted Groww's extensive digital network, covering 98. 36% of India's pin codes, and its leading position among the most active retail traders on NSE, demonstrating its wide reach and strong market presence.
According to Arihant Capital, Groww aims to enhance its profitability through its technology platform and asset-light business model. The company has demonstrated solid financial growth, with its revenue increasing at an impressive annual rate of 85% between FY23 and FY25, while its profit margin has reached 45%. The brokerage also stated that at the upper price band of ₹100, the issue is valued at a P/E ratio of 33. 8x, a key valuation metric for investors to consider, while this indicates a company with strong growth momentum and a clear strategy for future profitability.
Groww's Financial Health and Growth Strategy
Anand Rathi's Long-Term Subscription Advice
In a separate assessment, Anand Rathi has recommended subscribing to Groww's IPO for the long term, while the brokerage pointed out that Groww is expanding its customer base organically through customer referrals and by enhancing operational efficiency. Plus, the company plans to diversify its product portfolio to include offerings such as MTF (Margin Trading Facility), commodity derivatives, API trading, wealth management, bonds, and fixed-income products. Anand Rathi acknowledged that the IPO is fully priced given the current valuations but assigned a 'subscribe' rating due to the company's strong growth prospects. This suggests that the brokerage firm believes in the company's long-term growth trajectory and potential for sustained value creation.
Grey Market Premium (GMP) Insights
Market observers tracking the unlisted market indicate that Groww's shares are. Currently trading at a Grey Market Premium (GMP) of approximately ₹16. 5 per share. This represents a premium of about 17% over the upper end of the issue price of ₹100. Based on this GMP, the potential listing price could be around ₹116. 5. This suggests a balanced yet positive debut for the shares, reflecting current market sentiment. However, it's crucial to remember that GMP is merely an indicator from the unlisted market and can fluctuate rapidly based on evolving market conditions. Investors should carefully consider all factors before making an investment decision regarding the IPO.
