Groww’s parent Billionbrains Garage Ventures files updated DRHP with SEBI to raise ~₹7,000 crore via IPO. Fresh issue ~₹1,060 crore + offer for sale of ~₹5,000-6,000 crore. MOS to value company at ~$9 billion.
What We Know So Far
- Who & What: Groww’s parent company, Billionbrains Garage Ventures, has filed an updated Draft Red Herring Prospectus (DRHP) with SEBI to launch a large IPO of about ₹7,000 crore.
- Structure of the IPO:
• Fresh issue of equity shares worth ₹1,060 crore.
• Offer For Sale (OFS) by existing investors and promoters of 57,41,90,754 equity shares (≈ ₹5,000-6,000 crore worth). - Valuation Target: Groww is seeking a valuation of around USD $9 billion through this IPO.
Promoters, Shareholding & Lock-in Details
- The co-founders/promoters are Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal.
- Founders together own about 27.97% of the company.
- Only about 0.07% of total shares will be sold by the founders in the IPO.
- Promoter shares will come with a lock-in period of 1.5 years (18 months) from listing.
Use of Funds & Objectives
Groww plans to deploy the funds raised through the IPO in the following ways:
| Use | Estimated Amount / Purpose |
|---|---|
| Brand building & performance marketing | ~ ₹225 crore |
| Groww Creditserv Technology (NBFC arm) capital | ~ ₹205 crore |
| Groww Invest Tech (Margin Trading Facility / MTF business) | ~ ₹167.5 crore |
| Strengthening cloud infrastructure | ~ ₹152.5 crore |
| Inorganic growth, acquisitions & corporate purposes | Remainder of the proceeds |
Financials, Performance & Market Position
- Groww reported a net profit of ~₹1,824 crore in FY25, a strong turnaround.
- In Q1 FY26, it posted revenue of ~₹904 crore and profit of ~₹378 crore.
- The company shows very healthy margins: contribution margin ~85%, net profit margin ~44%.
- Groww is among the top brokers in India: approximately 12.6 million active NSE clients, ~26% market share among NSE’s active clients as of June 2025.
Timeline & Other Details
- Groww initially filed draft IPO papers via the confidential pre-filing route around May 2025, received SEBI’s nod for that confidential application in August.
- It is expected that the final IPO price band will be fixed by mid-October, with a planned listing perhaps in November 2025. Moneycontrol
Risks, Considerations & What to Watch
- Investor expectations will be high given already strong financials and high valuation. Delivering consistent growth, especially in newer verticals (MTF, NBFC, etc.), will be key.
- OFS by early investors means a lot of shares will be sold in the market—can affect post-listing share supply and short-term sentiment.
- Macro risks: regulatory changes in broking / securities markets, interest rate trends, capital market volatility.
- Competition from existing brokers and wealth-tech players might put pressure on user acquisition costs and margins.
Groww’s filing of the DRHP for a ~₹7,000 crore IPO marks one of the most significant fintech / wealth-tech IPOs in India. It reflects strong profitability, ambitious growth plans, and investor confidence. How the markets to react at listing, the final pricing, and Groww’s ability to maintain momentum will define whether this is a landmark success or simply another high-expectation IPO.
