Groww IPO Gains Traction: Subscription Reaches 0.57x on Day Two
Billionbrains Garage Ventures Ltd.'s IPO, aiming to raise over Rs 6,500 crore, has reached 0.57 times subscription on its second day. Retail investors show strong interest with 1.91 times subscription. The IPO, priced at Rs 95-100 per share, includes a fresh issue of Rs 1,060 crore and an offer-for-sale of Rs 5,572.3 crore. The grey market premium stands at Rs 14.75, indicating a potential listing price of Rs 114.75. Groww reported a profit of Rs 378.37 crore in Q1FY26, up 12% YoY, while revenue decreased by 9.60% to Rs 904.4 crore. Funds will be used for cloud infrastructure, marketing, investments in subsidiaries, and potential acquisitions.
*this image is generated using AI for illustrative purposes only.
Billionbrains Garage Ventures Ltd., the parent company of the popular online trading platform Groww, has seen its Initial Public Offering (IPO) subscription reach 0.57 times on the second day of bidding. The IPO, which aims to raise over Rs 6,500 crore, has garnered significant interest, particularly from retail investors.
Subscription Details
The IPO, which opened on November 4 and is set to close on November 7, has seen investors bid for 20.63 crore shares against the 36.48 crore shares on offer. Here's a breakdown of the subscription status:
| Investor Category | Subscription Rate |
|---|---|
| Retail Investors | 1.91 |
| QIBs | 0.10 |
| NIIs | 0.59 |
IPO Highlights
- Price Band: Rs 95-100 per share
- Issue Size: Over Rs 6,500 crore
- Fresh Issue: Rs 1,060 crore
- Offer-for-Sale: Rs 5,572.3 crore
- Grey Market Premium: Rs 14.75
- Potential Listing Price: Rs 114.75
Financial Performance
Groww has reported a financial performance in the recent quarter:
| Metric | Q1FY26 | YoY Change |
|---|---|---|
| Profit | Rs 378.37 cr | 12.00% |
| Revenue | Rs 904.4 cr | -9.60% |
Utilization of Proceeds
The company plans to use the funds raised from the IPO for:
- Enhancing cloud infrastructure
- Marketing activities
- Investments in subsidiaries
- Potential acquisitions
Market Sentiment
The grey market premium of Rs 14.75 indicates positive investor sentiment towards the Groww IPO. This premium suggests a potential listing price of Rs 114.75, representing a 14.75% increase over the upper end of the price band.
The strong subscription rate from retail investors, at 1.91 times, demonstrates significant interest from individual market participants. However, the subscription rates for Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) are currently lower, at 0.10 times and 0.59 times respectively.
As the IPO enters its final day, it will be interesting to see how the overall subscription numbers evolve, particularly in the QIB and NII categories. The market will be watching closely to see if the strong retail interest translates into a successful listing for this fintech player in the growing Indian online trading space.
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