IPO Size: Rs.6,632 cr

• Fresh Issue of Rs. 1,060 cr for (i) brand building Rs. 225 cr (ii) NBFC business Rs. 205 cr (iii) margin trade funding (MTF) business Rs. 168 cr (iv) cloud infra Rs. 153 cr (v) balance unidentified acquisition and general corporate purposes
• Offer for Sale (OFS) of Rs. 5,572 cr, by 8 financial investors (~58% combined stake to drop to 47% post IPO). 4 promoters holding 28% stake are not participating in the OFS.  

Price band: Rs. 95-100 per share

M cap: Rs. 61,736 cr, implying 10.7% dilution

• 75% for institutions and only 10% retail, as cash exceeds networth

IPO Date: Tue 4^th Nov to Fri 7^th Nov 2025, Listing Wed 12^th Nov 2025

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

India’s Largest and Fastest growing Digital Investment Platform

Billionbrains Garage, popularly Groww, is a 8 year old financial services company, offering broking, mutual fund distribution, lending, margin trading, wealth management services, to 18 million customers. Of 14.4 million active users, Groww has a share of 45% in net addition in NSE active users, becoming the largest digital broker, toppling leader Zerodha.

Dominant Capital Market Play

1 in every 3 new SIPs and 1 in 4 new demat account openings are Groww enjoying 13% of market share in India’s monthly SIPs. 80% of company’s customers come from fast-growing tier 2 and above cities, with median age of 31 years, indicating taping into the young and rising population, providing stickiness to business.

Broking Mix Reducing

While 85% of FY25 revenue of Rs. 4,000 cr is contributed from broking activity, it has shrunk from 92% in FY23. Q3FY26 onwards, share of broking will lower to ~80% as wealth management ‘Fisdom’ acquired in Oct 2025 fof Rs. 961 cr. Also, MTF has scaled to Rs. 1,000 cr as of 30.6.25, from Rs. 600 cr, as of 31.3.25, due to technology-led trust.

Company offers personal loans and loan against securities to existing customers, with Rs. 1,100 cr AUM, although the right to win in NBFC is yet to be established. 

Technology-backed Profitable growth

FY25 total income stood at Rs. 4,062 cr, with PAT of Rs. 1,824 cr. Q1FY26 income dropped 10% YoY due to lower F&O volumes, but PAT rose 12% YoY to Rs. 378 cr.

In-line with industry, Q2FY26 may be soft for Groww too, but positive outlook like from Q3FY26 as base effect gets priced in. Having said that, long term outlook remains positive.

Similar Valuation as Pre-IPO round

Groww raised ~Rs. 1,735 cr in June 2025 at Rs.96.56 per share. After 4 months, IPO price of Rs.100 implies 3.6% premium, which is inline.

Promoters did Rs.114 cr secondary in June 2025, after Rs. 700 cr cash was paid to them, of which Rs. 410 cr net of tax was used, to purchase shares at Rs. 75 per share in Nov 2024.

Peer Valuation

Mcap of Rs.62,000 cr leads to a PE multiple of 33x on trailing twelve month (TTM) basis. Digital broking peer Angel One, which reported 50% YoY drop in Q1FY26 profit, is trading at 29x. Since Groww reported 12% YoY growth in Q1FY26 PAT, this premium is justified.

PE of 33x is also attractive when compared to other capital market plays like stock exchange, depository, registrar and transfer agents, most all ruling over 45x, although some do enjoys entry barriers.

Huge Untapped Opportunity

Volatility in earnings due to market cycle or regulatory changes are real risks in the business, but Groww is a profitable start-up backed by scalable technology. 

As stock market penetration in India is just 7%, there is huge opportunity, which Groww, with a demonstrated track record, is well placed to capture, in the long term.