The initial share sale of India’s largest stockbroking firm Groww has received a strong response from anchor investors ahead of the bidding opening for other investor categories. Sources indicate Groww has secured bids worth Rs 50,000 crore from anchor investors before the IPO opens to the public on Tuesday. The anchor book, sized around Rs 3,000 crore, was oversubscribed more than 15 times with participation from major domestic and global marquee investors eager to invest in the profitable stockbroking platform.
The anchor book attracted prominent investment firms, including SBI Mutual Fund, Sequoia Capital, Abu Dhabi Investment Authority (ADIA), Dragoneer Investment Group, and Coatue Management. Market experts have also endorsed the Rs 6,632 crore IPO, with most giving it a ‘subscribe’ rating.
The Rs 6,632.30 crore IPO launched by Billionbrains Garage Ventures, the parent company of Groww, is a combination of a fresh issue of 10.60 crore shares aggregating to Rs 1,060.00 crore, and an offer for sale of 55.72 crore shares aggregating to Rs 5,572.30 crore. The three-day subscription for the Groww IPO will commence on Tuesday and close on Friday.
On Monday, the unlisted shares of Groww were commanding a grey market premium (GMP) of Rs 14.5, indicating a potential listing gain of 14.5%. The Groww IPO price band is set between Rs 95 and Rs 100 per share.
During Q1FY26, the company reported a net profit of Ra 378.4 crore, up 11.9% YoY. For the full FY25, it posted a profit of Rs 1,824.4 crore compared with a loss of Rs 805.5 crore in FY24. Its revenue surged 49.5% to Rs 3,901.7 crore in FY25 from Rs 2,609.3 crore in FY24. At the upper price band, the company is valued at 33.8x FY25 P/E, implying a post-issue market capitalisation of Rs 61,736 crore.
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.