Abhishek Sinha
Groww IPO Listing: Shares of Billionbrains Garage Ventures, the parent company of online investment platform Groww, made a strong debut on Dalal Street on Tuesday. The stock opened at ₹114 on the BSE, marking a 14% premium over its issue price of ₹100. On the NSE, Groww shares were listed at ₹112, up 12% from the IPO price.
The robust listing came as a positive surprise to investors and analysts, especially after muted debuts by other recent market entrants such as Lenskart Solutions, Studds Accessories, and Orkla India.
Listing Defies Grey Market Expectations
Before the listing, the grey market premium (GMP) for Groww shares was around ₹5, suggesting a modest 5% listing gain. However, the stock outperformed projections, reflecting strong investor confidence in the company’s business model and future growth potential.
Strong Subscription Across Investor Categories
The ₹6,632-crore Groww IPO received an overwhelming response, with an overall subscription of 17.60 times on the final day.
- Qualified Institutional Buyers (QIBs) subscribed 22.02 times.
- Non-Institutional Investors (NIIs) subscribed 14.20 times.
- Retail Investors subscribed 9.43 times.
The IPO, open between November 5 and November 7, was priced in the range of ₹95–₹100 per share, valuing the Bengaluru-based fintech startup at over ₹61,700 crore (around $7 billion) at the upper end.
Fund Utilization Plan
From the fresh issue of ₹1,060 crore, Groww has earmarked funds for several key initiatives:
- ₹225 crore for brand building and performance marketing.
- ₹205 crore to strengthen the NBFC arm, Groww Creditserv Technology Pvt Ltd (GCS).
- ₹167.5 crore for margin trading facilities via Groww Invest Tech Pvt Ltd (GIT).
- ₹152.5 crore to enhance cloud infrastructure and technology capabilities.
Analyst View
Market experts believe the successful listing could revive investor sentiment in the startup IPO space. “Groww’s performance signals a renewed appetite for fundamentally strong fintech firms with sustainable growth prospects,” said a Mumbai-based market analyst.
