Groww IPO: Price band set at ₹95-100
Billionbrains Garage Ventures, the parent company of stockbroking firm Groww, on Thursday set a price band of ₹95-100 per share for its upcoming initial public offering (IPO). It aims to raise ₹61,700 crore, or approximately over US$7 billion.
According to a public announcement, the company’s ₹6,632 crore IPO will open for public subscription on November 4 and close on November 7.
The IPO comprises a fresh issue of equity shares worth ₹1,060 crore, as well as an offer for sale (OFS) of 574,190,754 equity shares by promoters and investor shareholders.
As part of the OFS, the company’s promoters, Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, are offering up to 1 million shares each. Additionally, investors such as Peak XV Partners Investments VI-1, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI Private Limited, and Kauffman Fellows Fund, LP are also selling their shares.
Groww’s founders hold a 27.97 percent stake in the company and have applied as promoters with a 20 percent lock-in period of 1.5 years from the time of listing. In the IPO, they are offering to sell only 0.07 percent of the company’s total shares.
The company, backed by prominent investors such as Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, plans to use the proceeds from the IPO to invest in technology development and business expansion.
Rs 225 crore of the new issue will be used for brand building and performance marketing activities. Additionally, ₹205 crore will be invested in Grow Creditserve Technology Private Limited (GCS), the NBFC arm, to enhance its capital base.
In addition, ₹167.5 crore will be infused into Grow Invest Tech Private Limited (GIT) to fund its margin trading facility (MTF) business. ₹152.5 crore is earmarked for strengthening cloud infrastructure. The remaining amount will be used to fund inorganic growth through acquisitions and for general corporate purposes.
Bengaluru-headquartered Groww filed draft papers for an IPO with market regulator SEBI in May through the confidential pre-filing route and received SEBI approval in August.
Groww chose the confidential pre-filing route, which allows it to defer public disclosure of IPO details under the DRHP until later stages. This route is becoming popular among Indian companies seeking flexibility in their IPO plans.
In FY2025, the stockbroking firm reported a profit of ₹1,824 crore. Its profit for the first quarter of FY2026 was ₹378 crore. It has the highest contribution margin in the industry at 85 percent and a net profit margin of 44 percent, reflecting a simple direct-to-consumer model.
Over 80 percent of its new clients are onboarded naturally, and its three-year retention rate is 77 percent.
According to AMFI data, in terms of mutual funds, Groww contributed ₹34,000 crore in SIP investments in FY2025, representing 11.8 percent of the industry’s total investments.
The company has recently expanded into wealth management, commodities, MTFs, and loans against shares, which it considers part of its long-term growth strategy.
The company stated that 75 percent of the issue size is reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 10 percent for retail investors. Groww will debut on the stock market on November 12.
