Zerodha Users Flock to Rival Groww's IPO, Accounting for 20% of Applications
Zerodha co-founder Nithin Kamath revealed that about 20% of all IPO applications for Groww came from Zerodha customers. Groww's IPO, sized at ₹6,632.30 crore with a price band of ₹95-₹100 per share, saw strong retail investor interest with 1.91 times subscription on the first day. The IPO's total subscription stood at 57%, with institutional buyers at 10% and non-institutional investors at 59%. Anchor investors, including Abu Dhabi Investment Authority and Government of Singapore, contributed ₹2,984 crore. The grey market premium suggests a potential listing price of ₹117.25 per share.
*this image is generated using AI for illustrative purposes only.
In a surprising turn of events, Zerodha co-founder Nithin Kamath revealed that approximately 20% of all IPO applications for rival fintech platform Groww came from Zerodha customers. This significant overlap between the two platforms highlights the growing interest in fintech investments among retail investors.
Groww IPO Details
Groww's Initial Public Offering (IPO) has garnered substantial attention in the market. Here are the key details:
| Aspect | Details |
|---|---|
| Price Band | ₹95.00 - ₹100.00 per share |
| IPO Size | ₹6,632.30 crore |
| First Day Subscription | 57.00% |
| Retail Investor Subscription | 1.91 times |
| Institutional Buyer Subscription | 10.00% |
| Non-Institutional Investor Subscription | 59.00% |
| Anchor Investment | ₹2,984.00 crore from 102 investors |
| Grey Market Premium | ₹17.25 |
| Potential Listing Price | ₹117.25 per share |
Notable Anchor Investors
The IPO has attracted significant interest from institutional investors, with some notable names including:
- Abu Dhabi Investment Authority
- Government of Singapore
Market Response
The first day of the IPO saw a mixed response across different investor categories:
- Retail Investors: Showed the strongest interest with 1.91 times subscription
- Institutional Buyers: Demonstrated cautious approach with 10% subscription
- Non-Institutional Investors: Displayed moderate interest with 59% subscription
Zerodha-Groww Connection
The revelation by Nithin Kamath about Zerodha customers' participation in Groww's IPO underscores the interconnected nature of the fintech ecosystem. This crossover suggests that:
- Retail investors are actively exploring opportunities across multiple platforms
- There's growing interest in investing in the fintech sector itself
- Users of one platform are not necessarily exclusive to it, indicating a competitive and dynamic market
Market Sentiment
The grey market premium of ₹17.25 indicates positive sentiment towards Groww's IPO. If this sentiment holds, it could potentially lead to a listing price of ₹117.25 per share, representing a 17.25% premium over the upper end of the price band.
As the IPO progresses, it will be interesting to see how the subscription rates evolve and whether the strong retail investor interest translates into a successful listing for Groww.
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