Biggest retail broker by active clients, now launching its maiden public issue
Raising funds primarily for tech, lending, infrastructure, and marketing
Profitability scale-up and low acquisition costs seen as key strengths
Billionbrains Garage Ventures, the parent company of investment app major Groww, is all set to go public on Tuesday. The company’s ₹ 6,632.30 crore IPO will be open for public subscription on November 4 and conclude on November 7. It has fixed a price band of ₹ 95-100 per share for its upcoming market debut, targeting a valuation of over ₹ 61,700 crore (about $ 7 billion).
The IPO comprises a fresh issue of equity shares worth ₹ 1,060 crore along with an Offer For Sale (OFS) component of 574,190,754 equity shares by promoters and investor shareholders.
As a part of the OFS, the company's promoters -- Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal -- each offering up to 1 million shares, besides, investors such as 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, L.P are offloading shares.
The company, which is backed by marquee investors like Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, plans to use proceeds of the IPO for investment in technology development and business expansion. Of the fresh issuance, ₹225 crore will be used for brand building and performance marketing activities, and ₹ 205 crore will be invested in Groww Creditserv Technology Private Limited (GCS), the NBFC arm, to augment its capital base.
Additionally, ₹167.5 crore will be infused into Groww Invest Tech Private Limited (GIT) for funding its Margin Trading Facility (MTF) business, while ₹152.5 crore has been earmarked towards strengthening cloud infrastructure. The balance will be utilised for funding inorganic growth through acquisitions and for general corporate purposes.
Founded in 2016, Groww emerged as India’s largest stockbroker with over 12.6 million active clients and an over 26% market share as of June 2025. The platform has reported a profit of ₹1,824 crore in FY25, while Q1 FY26 profit stood at ₹378 crore.
The company is commanding a valuation close to ₹61,750 crore for the IPO. According to investorgain.com, the grey market premium (GMP) of Groww IPO stood at ₹14.5 apiece. With the company showcasing profitability, brokerages have begun weighing in on whether the IPO valuation leaves enough upside for new investors.
Brokerages on Groww IPO
At the upper price band, SBI Securities said that Groww is trading at a PE of 33.8 times FY25 EPS and 40.8 times Q1 FY26 annualised EPS. The company 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 tailwind. We recommend investors to subscribe to the issue at the cut-off price,” it said.
The brokerage firm further stated that the broking industry is expected to grow at a CAGR of 14-16% over the period of FY25-30P. It believes that the company’s leadership in retail broking as well as its wealth tech ecosystem, is expected to benefit from sector tailwind. “We recommend investors to subscribe to the issue at the cut-off price”.
On the other hand, Nuvama noted that the platform’s high activation rate, consistently above 33% since FY24, has sharply lowered customer acquisition costs to around ₹1,441 per active user in FY25, supporting robust unit economics and a strong EBITDA margin of nearly 60%. The company has cemented its position as India’s largest retail broker, commanding over 26% active client share and a meaningful presence in both cash along with F&O segments in Q1 FY26.
“Groww’s activation rates over FY24–Q1FY26 are at 33%-plus driving down CAC per active client to just ₹1,441 in FY25, yielding strong EBDAT margin of 59.7%. We believe apart from competitive pricing, technology and user interface are key factors driving success. Besides broking, Groww has expanded into lending (MTF, LAS, personal loans), asset and wealth management, insurance distribution—businesses yet to scale up,” it added.
Swastika Research has also recommended ‘subscribing to the issue for long-term’, noting that the company stands as a leading direct-to-customer digital investment platform with a market share exceeding 26% and a consistent track record of strong revenue growth. The brokerage highlighted that the dip in FY24 performance was largely attributable to a one-time tax-related accounting adjustment rather than operational weakness.
While the IPO appears fairly valued with limited immediate upside, Swastika believes prudent investors may find merit in participating for medium- to long-term gains given the company’s financial strength and market positioning.
SMIFS asserted that the proposed deployment of IPO proceeds will enhance platform reliability, customer acquisition, and lending capacity, accelerating long-term growth and margin expansion.
“We recommend subscribing to the issue as a good long-term investment, backed by Groww’s trusted retail brand, high retention-led growth, scalable tech ecosystem, diversification across investment products, strong profitability trajectory, and planned investments in technology, marketing, and capital expansion to strengthen its competitive leadership in India’s rapidly expanding wealth management industry,” it added.
