Groww's Rs 6,632-crore IPO subscribed nearly 2x on Day 2, retail portion booked 5x: Check latest GMP

Billionbrains Garage Ventures IPO

The initial public offering of Billionbrains Garage Ventures, the parent company of leading stock broking platform Groww, got subscribed nearly two times (164 percent) on its second day of public bidding, November 6. This comes despite a slight drop in the grey market estimates for the Rs 6,632-crore IPO.

The maiden public issue of the company received bids for nearly 59.82 crore shares, as against the offer size of 36.47 crore shares, according to data on NSE. Retail investors led the subscription numbers, booking their reserved portion more than 5 times (502 percent).

Non Institutional Investors have also fully subscribed their reserved portion (226 percent). Qualified Institutional Buyers (QIB) have booked 20 percent of the portion kept for them.

Groww IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with 11.5 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This has fallen from the 14.75 percent quoted by the site earlier yesterday, and 16.70 percent quoted before the IPO opened for public bidding.

According to IPO Watch, the unlisted shares of the company were trading with 14 percent GMP over the IPO price.

About Groww IPO:

The initial public offering of Billionbrains Garage Ventures Private Limited, the parent company of the popular broking platform Groww, opened for public subscription on November 4, and will close on November 7. The price band has been set at Rs 95-100 per share.

Groww has built a massive user base in the retail investment space and is backed by marquee investors — Peak XV Partners, YC Holdings, Tiger Global Management, and Sequoia Capital. The company plans to raise a total of Rs 6,632.30 crore through this IPO. This includes a fresh issue of shares worth Rs 1,060 crore, and an offer-for-sale of 55.72 crore shares, valued at Rs 5,572.30 crore, by existing investors.

The allotments are expected to be finalised by November 10, and the shares are likely to be listed on the stock exchanges on November 12.

Investors can bid for a minimum of 150 shares, which translates to an investment of around Rs 15,000 at the upper end of the price band. With a massive investor base and backing from top global funds, Groww’s IPO is expected to draw significant participation from both retail and institutional investors.

Should you apply for Groww IPO?

Master Capital Services advised investors to subscribe to the issue for the long term. “India’s investment and wealth management industry is undergoing a major transformation driven by the rapid adoption of digital-first investment platforms,” it said.

As India continues its transition toward digital investing, the industry presents strong potential for sustained growth and margin expansion. Groww, as India’s largest and fastest-growing investment platform by active users based on NSE active clients, with approximately 12.6 million active clients, is strategically positioned to capitalize on this momentum through its technology-led, customer focused business model, the brokerage said.

Angel One held a ‘Neutral’ rating for investors with a long-term perspective, noting that the company’s post-issue P/E of 40.79x valuation at the upper price band of Rs 100 per share, appears steep compared to peers.

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