MUMBAI: Billionbrains Garage Ventures, the parent company of the largest online investment platform Groww, has set Rs 95-100 as the price band for the Rs 6,632-crore (at the upper end) initial public offer (IPO) that opens on November 4, targeting a valuation of over Rs 61,700 crore.
The mainline offer of Rs 6,632.3 crore comprises a fresh issue of 106 million shares aggregating to Rs 1,060 crore and an offer for sale (OFS) of 557.2 million shares adding up to Rs 5,572.3 crore, the company told reporters here Thursday.
The company is backed by marquee investors like Peak XV, Tiger Capital, and Microsoft chief executive Satya Nadella among others.
The shareholders selling through the OFS are the promoters -- Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal -- each offering up to 1 million shares. Apart from them, the OFS participation will be from the external investors Peak VI Partners Investments, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI, Kauffman Fellows Fund, Alkeon Innovation Master Fund, Propel Venture Partners and Sequoia Capital Global Growth Fund III.
Founded in 2016, Groww is a fintech platform that offers retail investors a direct-to-customer platform for wealth creation across a range of financial products. Last year it overtook the then market leader Zerodha to become the largest brokerage with around 12.6 million active demat account holders who dabble in mutual funds, equities, F&O, ETFs, IPOs, digital gold, and US stocks through its easy-to-use platform. It commands a hefty 26% plus market share as of June 2025.
The founders own 27.97% in the company and have filed as promoters with a 20% lock-in for 18 months from the time of listing. In the IPO, they are offering to sell only 0.07% of the total shares.
The company will use Rs 152.5 crore from the fresh issue portion for expenditure towards cloud infrastructure, Rs 225 crore for brand building activities, Rs 205 crore for investment in one of its material subsidiaries for augmenting its capital base, and Rs 167.5 crore for investment in another subsidiary that’s into MTF business.
On Thursday, the unlisted shares of Groww were trading at Rs 110.5, commanding a premium of Rs 10.5 against the upper end price of Rs 100.
Headquartered in Bengaluru, Groww filed draft papers in May with markets regulator Sebi for the IPO through the confidential pre-filing route and had received the Sebi approval in August. Groww opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the DRHP until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.
In FY25, the stock broking firm reported a net profit of Rs 1,824 crore, while Q1 FY26 profit stood at Rs 378 crore. It maintains an industry-high contribution margin of 85% and a net profit margin of 44% reflecting a lean direct-to-consumer model. Over 80% of its new customers are acquired organically, and its three-year retention rate is 77%.
On the mutual funds side, Groww accounted for Rs 34,000 crore of SIP inflows in FY25, or 11.8% of industry totals, according to Amfi data. It recently expanded into wealth management, commodities, an MTF, and loans against shares, moves it sees as part of its longer-term growth strategy.
