Groww IPO anchor book draws bids worth a whopping ₹50,000cr
What's the story
Wealth-tech firm Groww has witnessed massive interest in its upcoming initial public offering (IPO), with bids worth ₹50,000 crore already received. The company's anchor book, estimated at around ₹3,000 crore, has been oversubscribed over 15 times. SBI Mutual Fund and other large domestic mutual funds have participated in the bidding process along with US investors like Sequoia Capital and Dragoneer Investment Group.
Valuation details
Issue comprises fresh and offer for sale component
Groww's ₹6,632 crore IPO is expected to value the Bengaluru-based brokerage firm at around $7 billion. The issue consists of a fresh issue of ₹1,060 crore and an offer for sale worth ₹5,572 crore. The company had announced its IPO price band of ₹95-₹100 on October 29. Groww is entering the market as a profitable fintech with a price-to-earnings ratio of 33.5.
Financials
Company reported net profit of ₹1,899 crore in FY25
For FY25, Groww reported a revenue of ₹4,056 crore and a net profit of ₹1,899 crore with net margins of 44.85%. The IPO will be open for subscription from November 4 to 7. The allotment of shares will be finalized by November 10 while trading on BSE and NSE will begin on November 12. The company plans to use the fresh issue proceeds for cloud infrastructure, brand building activities among other things.
Shareholding
Peak XV Partners Investments is the largest investor
Promoters of Groww, including Lalit Keshre, Harsh Jain, Ishan Bansal and Neeraj Singh hold a 28.04% stake in the company while public shareholders own 71.96%. Peak XV Partners Investments is the largest investor with a 19.87% stake followed by Ribbit Capital at 14.78% and YC Holdings at 13.24%. The company plans to invest ₹205 crore in its subsidiary Groww Creditserv Technology for augmenting its capital base among other things with IPO proceeds.