The IPO of Billionbrains Garage Ventures Ltd, the parent company of Groww, is set to close for subscription today, November 7. This IPO, valued at Rs 6,632 crore, has garnered significant interest from retail investors, and its success will be a crucial test for Groww in the rapidly growing fintech sector in India.
Groww commenced its IPO on November 4, offering shares in the price range of Rs 95–100 each. By 11:30 am on Friday, the subscription rate had reached nearly 3 times the available shares, indicating strong demand for the offering.
In the unofficial grey market, Groww’s IPO continues to command a premium, albeit slightly lower than earlier in the week. The grey market premium (GMP) for Groww was around Rs 6 per share on Friday morning, down from Rs 11 previously. This hints at a potential listing price around Rs 106 per share, suggesting a possible 6% listing gain if market sentiment remains stable.
The final share allotment for the Groww IPO is expected to be completed by November 10. Refunds for unallocated investors are anticipated to start by November 11, with shares credited to demat accounts before the expected listing date of November 12, on both the BSE and NSE platforms.
Analysts have differing opinions on Groww’s IPO valuation and its potential for long-term growth. While the platform has gained popularity among millennial investors for its ease of use and asset growth, its profitability remains modest as it expands its services. Anand Rathi Research highlighted Groww’s leading position in retail investing in India and its strong customer retention rates, recommending a “Subscribe—Long Term” rating for the IPO.
As the IPO deadline approaches, investors are awaiting final subscription figures and reactions post-allotment. A positive debut is anticipated, especially given the enthusiastic retail response and stable grey market sentiments. Short-term gains are likely for allottees, but the long-term outlook will depend on Groww’s ability to sustain profitability in a competitive fintech landscape.
The spotlight is now on the upcoming debut of Groww’s stock on November 12, where its performance will determine if the company’s success matches the buzz surrounding its IPO.