Summary of this article
Groww IPO listing date is November 12.
Shares of Groww listed on the NSE and BSE with a premium.
Billionbrains Garage Ventures Ltd listed with gains of 12 per cent and 14 per cent on NSE and BSE respectively.
Groww IPO Listing Price: Shares of discount brokerage platform Groww (Billionbrains Garage Ventures Ltd) listed on the NSE and BSE on November 11. Shares of the fintech company made a strong debut on the exchanges.
Groww shares listed on the exchanges at Rs 112 apiece with gains of 12 per cent against the issue price of Rs 100 per share. Groww shares listed at Rs 114 apiece with 14 per cent premium on the BSE.
Groww IPO Listing Gain
Retail investors who were allotted a minimum of one lot or 150 shares would have gained at least Rs 1,800 (Rs 112 - Rs 100 x 150). As many as 26.71 lakh shares of Groww changed hands on the BSE and the total market capitalisation of the company stood at Rs 70,379 crore.
Groww IPO: Details
Billionbrains Garage Private Ventures Ltd raised Rs 6,632.3 crore through its public issue. The fintech company’s public issue consisted of a fresh issue of 106 million shares aggregating to Rs 1,060 crore and an offer for sale of 557.2 million shares aggregating to Rs 5,572.3 crore. Groww IPO price band was fixed between Rs 95 and Rs 100.
The minimum lot size for application for retail investors was fixed at 1 lot comprising 150 shares, which aggregated to an investment of Rs 15,000. Groww IPO garnered decent investor interest in its three-day subscription window. Groww IPO was subscribed over 17 times across categories. As many as 6.41 billion shares of Groww were bid for against the 364.7 million shares offered for subscription.
In the three-day bidding window, qualified institutional bidders led the demand for Groww shares, booking their quota 22.02 times. On the other hand, non-institutional investors and retail individual investors booked their quota 14.2 times and 9.43 times respectively.
Groww IPO: Objective
Billionbrains Garage Private Ventures Ltd plans to use the money raised via the public issue for financing its cloud infrastructure. The fintech firm plans to use the proceeds for undertaking brand building and performance marketing activities and investment in the company’s subsidiaries Groww Creditserv Technology Private Ltd (GCS) and Groww Invest Tech Private Ltd (GIT). The proceeds will also be used for funding inorganic growth through unidentified acquisitions and general corporate purposes.
Groww: Business Model
Groww's business operates on a direct-to-consumer (D2C) model. The company offers a broad suite of financial products including a trading platform for stocks, derivatives, and lending. The company generates revenue vis-a-vis brokerage fees on stock, derivatives trading, interest on margin trading, and other distribution and lending services.
Groww: Peers
Groww competes with several other tech-enabled discount brokers and traditional full-service brokerages. The company competes with digital first platforms such as Zerodha, Angel One, Upstox, Paytm Money and 5paisa. The company also competes with traditional platforms which provide similar services such as ICICI Direct, HDFC Securities, Motilal Oswal Financial Services and Sharekhan.
