Groww's blockbuster initial public offering wrapped up allotment on Monday, setting the stage for its shares to debut on BSE and NSE today, November 12, as the investment platform rides a wave of retail enthusiasm despite softening grey market buzz.
Registrar Link Intime India finalized basis of allotment late November 10, with oversubscription exceeding 5 times overall, led by qualified institutional buyers at 8.2 times. Retail portion booked 2.1 times, reflecting strong individual investor faith in the zero-brokerage pioneer's growth trajectory. Shares trade ex-rights today for eligible shareholders.
Priced at ₹95-₹100, the ₹6,632 crore issue—India's largest fintech IPO this year—values Groww at ₹55,000 crore post-money. Grey market premium fell 76% to ₹4 as of Tuesday morning, hinting at a modest 4% listing pop at the upper band, down from ₹17 peaks last week.
Groww, founded in 2016, disrupted discount broking with 40 million users, processing ₹3 lakh crore in mutual fund assets under management. Fiscal 2025 revenues soared 60% to ₹2,500 crore, with EBITDA margins at 25%, propelled by gold ETF launches and stock SIPs. User additions hit 5 million quarterly, capturing 25% market share from Zerodha.
Proceeds fund tech upgrades and international expansion into Southeast Asia. The fresh issue of ₹2,000 crore bolsters working capital, while the offer for sale allows early backers like Tiger Global to exit partially. No immediate capex plans, but management eyes AI tools for personalized advice.
Brokerages applaud the debut. Motilal Oswal targets ₹120, citing 30% revenue CAGR through 2027 on rising SIP penetration—now 15% of household savings. Risks include SEBI's tighter algo-trading rules and competition from Upstox. Groww's gold ETF traded at ₹119.62 on November 10, underscoring asset stability.
As shares list, focus shifts to post-IPO lock-ins expiring in 2026. The IPO's success validates India's demat boom, with accounts surpassing 150 million. Investors await volume spikes, potentially mirroring Zomato's 60% surge.
