Groww IPO: Check Latest GMP Ahead of Allotment Scheduled for Today

Online brokerage platform Groww’s latest Grey Market Premium (GMP) on the allotment date (November 10, 12:00 PM) stands at ₹5, reflecting a 5% premium over the upper price band of ₹100, Investorgain reported.

The current GMP of ₹105 is 7.8% lower than the level recorded on the IPO’s opening day.

The allotment of the Groww IPO is expected to be finalised later today, November 10, with a tentative listing date set for November 12.

Based on grey market activity observed over the past 11 sessions, the IPO GMP is trending downward today and is expected to decline further. Experts note that the GMP has ranged between a minimum of ₹5.00 and a maximum of ₹16.70 during this period.

The ‘grey market premium’ reflects investors’ willingness to pay more than the official issue price.

Groww IPO Details

Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, has set a price band of ₹95–100 per share for its initial public offering (IPO), targeting a valuation of over ₹61,700 crore (about $7 billion). According to a public announcement, the ₹6,632 crore IPO opened for public subscription on November 4 and closed on November 7.

The issue comprises a fresh equity share offering worth ₹1,060 crore and an Offer for Sale (OFS) of 57,41,90,754 equity shares by promoters and existing investors.

As part of the OFS, the company’s promoters, Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, are each offering up to 1 million shares. Investor shareholders, including Peak XV Partners Investments VI-1, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI Pte. Ltd., and Kauffman Fellows Fund LP, are also offloading part of their holdings.

Groww’s founders collectively own 27.97% of the company and have been listed as promoters with a 20% lock-in for 1.5 years post-listing. In the IPO, they are selling only about 0.07% of the company’s total shares.

Fund Utilisation

Of the fresh issue proceeds, ₹225 crore will be allocated for brand-building and performance marketing activities, while ₹205 crore will be invested in Groww Creditserv Technology Private Limited (GCS), the company’s NBFC arm, to strengthen its capital base.

Additionally, ₹167.5 crore will be infused into Groww Invest Tech Private Limited (GIT) to fund its Margin Trading Facility (MTF) business, and ₹152.5 crore has been earmarked for enhancing cloud infrastructure. The remaining funds will be used for inorganic growth through acquisitions and for general corporate purposes.