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Groww IPO Subscribed 17.6x; GMP Dips to ₹6.5 Ahead of Listing

RR Team, November 7, 2025November 8, 2025
New Delhi, November 7, 2025: Billionbrains Garage Ventures the parent of investment platform Groww closed its three-day initial public offering with robust demand, recording an overall subscription of 17.6 times. Despite heavy bidding, the grey market premium (GMP) cooled to ₹6.5 per share, signalling modest listing expectations for November 12.

Subscription Snapshot

The IPO, sized at ₹6,632 crore with a price band of ₹95–100, attracted strong interest across investor categories. Qualified Institutional Buyers (QIBs) led the bidding, subscribing over 22.02x of their quota. Non-Institutional Investors (NIIs) subscribed around 14.20x, while retail investors applied for roughly 9.43x of the retail portion.

By volume, investors bid for more than 6.4 billion shares against an offer of about 364.8 million shares, underscoring strong appetite even as grey market signals softened.

Issue Details and Timetable

The offer comprised a fresh issue of ₹1,060 crore and an offer-for-sale (OFS) of 55.72 crore shares. At the upper band of ₹100, the issue implied a post-issue market capitalisation of roughly ₹61,700 crore (≈US$7 billion).

According to the company’s timetable, share allotment is expected on November 10, 2025, and listing on the stock exchanges is scheduled for November 12, 2025.

Use of Proceeds

Groww has outlined specific allocations for the ₹1,060 crore fresh raise. Key items include:

  • ₹225 crore for brand building and marketing;
  • ₹205 crore infused into Groww’s NBFC arm to boost capital;
  • ₹167.5 crore to support margin trading through Groww Invest Tech;
  • ₹152.5 crore for cloud infrastructure and platform scaling;
  • Remaining funds earmarked for acquisitions and general corporate purposes.

Why GMP Fell and What It Means

Grey market premiums are informal indicators of expected listing gains. A dip to ₹6.5 implies an expected listing around ₹106.5 at the upper band  roughly a 6.5% premium. Cooling GMPs can reflect a combination of a high OFS component, perceived valuation premium, or short-term market risk appetite.

Investors should treat GMP as a directional signal, not an official price guide. For allotment and listing prices, rely on exchange disclosures and registrar communications.

Growth Story and Strengths

Groww has scaled rapidly since 2016. The platform reports over 12.6 million active clients and roughly 26% market share among retail broking platforms (data as of June 2025). The company turned profitable in FY25, showcasing improved margins tied to scale and product diversification.

Key strengths include strong organic user acquisition, a technology-first platform, and expanding product suites including margin trading, NBFC-linked credit products, and wealth services.

Risks to Watch

Analysts and broker reports list several material risks: regulatory tightening on derivatives and margin rules; market volatility that can shrink trading volumes; intense competition from discount brokers; and cybersecurity or operational risks inherent to fintech platforms. These factors can affect near-term revenue and listing-day momentum.

Investor Takeaway

Groww’s IPO outcome reflects a healthy demand backdrop, especially from institutional buyers. The tempered GMP suggests modest listing upside vs. earlier enthusiasm. Long-term investors attracted to Groww’s growth and product roadmap may view this as a structural fintech play, while short-term speculators will watch allotment cuts and first-day trade closely.

News #BSE#GMP#GreyMarketPremium#Groww#GrowwAllotment#GrowwInvestors#GrowwIPO#GrowwListing#GrowwShares#GrowwSubscription#GrowwValuation#InvestmentNews#IPO2025#NSE#StockMarket

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