NEW DELHI: The initial public offering (IPO) of Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, was subscribed 17.60 times by the end of Friday, the closing day of bidding. The initial share sale received bids of about 641.87 crore shares against 36.47 crore shares on offer.
The Qualified Institutional Buyers (QIBs) led the buying, bidding for 438.04 crore shares against their quota of 19.89 crore, translating to 22.02 times subscription. The portion for Non-Institutional Investors (NIIs) was booked 14.20 times and the retail investor quota fetched 9.43 times the subscription.
The IPO of Groww comprises a fresh issue of Rs 1,060 crore and an offer-for-sale of Rs 5,572 crore, totalling Rs 6,632 crore. It will be the second big IPO to hit the bourses next week along with eyewear major Lenskart.
The IPO of eyewear major Lenskart Solutions was 28.26 times, highlighting confidence investors have in the Indian primary market and in the company despite valuation concerns. The Rs 7,278-crore IPO received bids for over 281 crore shares as against 9.97 crore shares on offer, as per BSE data.
While the two IPOs received healthy booking numbers, the latest trend in the unofficial grey market shows muted listing for the two high-profile companies. Ahead of its listing on Monday, the grey market premium (GMP) of Lenskart fell sharply on Friday.
The unlisted shares of the company were trading with just 2.5% GMP over the IPO price, according to data on Investorgain. This is a steep decline from the 24 percent GMP the IPO was commanding on October 31.
Similarly, Groww IPO’s GMP today has slipped to Rs 6.5 apiece on Friday, its lowest since the shares started to trade in the grey market. At the current GMP, Groww IPO listing price could be Rs 106.5, a premium of 6.50 percent over the issue price. Groww shares are scheduled to list on the stock exchanges on November 12.
Analysts at Anand Rathi said that Groww seeks to strengthen its pan-India brand by focusing on trust, transparency, and financial inclusion while expanding its customer base organically through word-of-mouth and operating leverage. “The company also plans to diversify its product suite with offerings like MTF, commodity derivatives, API trading, wealth management (‘W’), LAS, and Bonds to enhance engagement, wallet share, and AARPU. Considering these factors, the IPO appears fully priced and is rated “Subscribe – Long Term”, said Anand Rathi.
Shivani Nyati, Head of Wealth at Swastika Investmart said that considering its latest financial metrics and valuations, the issue seems fairly valued with limited near-term upside. Nyati added that investors may consider investing with a medium- to long-term perspective.