The ₹6,632.3-crore initial public offering of Billionbrains Garage Ventures, the parent company of investment and trading platform Groww, opens today in the ₹95-100 price band. The IPO lot size is 150 equity shares and in multiples of 150 equity shares thereafter.
The IPO is combination of a fresh issue of ₹1,060 crore (10.6 crore shares) and an offer-for-sale of ₹5,572.30 crore (5.52 crore shares). Under the OFS, investors Peak VI Partners Investments, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI, Kauffman Fellows Fund, Alkeon Innovation Master Fund, Propel Venture Partners and Sequoia Capital Global Growth Fund III will sell a part of their holdings.
The company has reserved up to 75 per cent of the issue for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and up to 10 per cent for retail investors.
Anchor investors
Billionbrains Garage Ventures on Monday garnered about Rs 2,984.5 crore from from 102 funds, including the Government of Singapore, the Monetary Authority of Singapore, Abu Dhabi Investment Authority, Goldman Sachs and Morgan Stanley. On the domestic front, major mutual funds, including HDFC Mutual Fund, Kotak Mahindra MF, Nippon India MF, SBI MF, Axis MF, Aditya Birla Sun Life MF, Mirae Asset, Motilal Oswal MF and ICICI Prudential Life Insurance, participated in the offering.
The company plans to use the funds raised from the fresh issue to meet expenses related to cloud infrastructure (₹152.5 crore); brand building and performance marketing (₹225 crore), investments in subsidiaries Groww Creditserv Technology Pvt. Ltd (₹205 crore) and in another subsidiary Groww Invest Tech Pvt. Ltd (₹167.5 crore) to bolster its margin trading facility (MTF) operations, besides funding inorganic growth through unidentified acquisitions and general corporate purposes.
The lead managers of the issue are Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, Axis Capital, and Motilal Oswal Investment Advisors. The registrar for the issue is MUFG Intime India Pvt. Ltd.
Billionbrains Garage Ventures Ltd. (Groww) is India’s largest and fastest-growing broking platform by active users on NSE as of June 25. Groww had 12.6 mn NSE active users as of June 25. The number of active users on Groww’s platform grew at a CAGR of 53 per cent between FY23 and 1QFY26. The company was founded in 2016 by four ex-Flipkart colleagues named Lalit Keshre, Harsh Jain, Ishan Bansal and Neeraj Singh.
It offers a direct-to-customer digital investment platform to invest and trade in stocks, derivatives, bonds, ETFs, IPOs, and mutual funds (Groww Mutual Fund). It also offers value-added services, such as MTF (Margin Trading Facility) and credit solutions.
SBI Securities says SUBSCRIBE
Valuation: At the upper price band, the stock is trading at a P/E of 33.8x FY25 EPS and 40.8x 1QFY26 annualised EPS. Billionbrains Garage Ventures Ltd. stands out as a strong player in India’s digital investing ecosystem. Its platform reach, product diversification and large user base offer a clear competitive edge. The Revenue/PAT has grown at a CAGR of 85%/100% over FY23-25. The broking industry is expected to grow at a CAGR of 14-16% over the period of FY25-30P.
“We believe the company’s leadership in retail broking as well as its wealth tech ecosystem, is expected to benefit from sector tailwinds. We recommend investors subscribe to the issue at the cut-off price,” said SBI Securities.
According to RELIANCE SECURITIES Groww is not just a stockbroker going public; it is an emerging fintech infrastructure company — layering credit, data, and distribution on top of its transaction engine. The growth triggers outlined above represent a flywheel that can compound both user base and profitability for several years, provided execution discipline and regulatory navigation remain strong. Owing to strong developments, we recommend to SUBSCRIBE.
Anand Rathi:
“At the upper price band, the company is valued at 33.8x FY25 P/E, implying a post-issue market capitalisation of ₹61,736 crore,” Anand Rathi Research said.
Groww aims to strengthen its pan-India brand by focusing on trust, transparency, and financial inclusion, while expanding its customer base organically through word-of-mouth and operating leverage. The company also plans to diversify its product suite with offerings like MTF, commodity derivatives, API trading, wealth management (‘W’), LAS, and Bonds to enhance engagement, wallet share, and AARPU.
Considering these factors, analysts believe the IPO appears fully priced and assigned a ‘Subscribe – Long Term’ rating.