Groww (operated by Billionbrains Garage Ventures Ltd.) is among India’s leading fintech platforms that has transformed how retail investors invest in mutual funds, stocks, and ETFs. The company’s much-awaited Initial Public Offering (IPO) has garnered significant attention from investors, considering its rapid growth, strong financials, and widespread brand recognition. However, with a post-issue P/E ratio of around 40x, many investors are questioning whether the issue is fairly priced or overvalued. In this article, we take a detailed look at the Groww IPO – its business model, financials, competitive strengths, risks, and valuation metrics to help you decide whether to subscribe or avoid this IPO.
About the Company
Incorporated in 2017, Billionbrains Garage Ventures Ltd. (Groww) is a Bengaluru-based fintech company offering a digital platform for investing in mutual funds, stocks, F&O, ETFs, IPOs, digital gold, and even U.S. equities. The platform is known for its simple and user-friendly interface, especially among first-time investors and the younger generation.
Groww’s mobile app is one of the top-rated investment apps in India and has been instrumental in democratizing investment access across urban and semi-urban areas.
The company also operates through subsidiaries like Groww Invest Tech Pvt. Ltd., Groww Creditserv Pvt. Ltd., and Groww Asset Management Ltd., diversifying into broking, credit, and AMC businesses.
As of June 30, 2025, Groww had 1,415 employees and over 50 million registered users.
Competitive Strengths
- Strong and Recognized Brand – “Groww” has become a household name for investing, with high customer trust and engagement.
- Customer-Centric Design – The app’s intuitive design enhances user experience, resulting in strong customer retention and cross-product adoption.
- Diversified Product Portfolio – Beyond stockbroking, Groww offers multiple products including mutual funds, credit solutions, and its own AMC.
- In-House Technology Stack – The company’s proprietary tech infrastructure enables scalability and cost efficiency.
- Consistent Execution and Profitability Growth – Groww has demonstrated the ability to scale profitably while maintaining strong margins.
Groww IPO Issue Details
| Particulars | Details |
|---|---|
| IPO Dates | November 4, 2025 to November 7, 2025 |
| Listing Date | November 12, 2025 (Tentative) |
| Price Band | ₹95 to ₹100 per share |
| Face Value | ₹2 per share |
| Lot Size | 150 Shares |
| Minimum Investment (Retail) | ₹15,000 |
| Total Issue Size | ₹6,632.30 crore |
| Fresh Issue | ₹1,060 crore |
| Offer for Sale (OFS) | ₹5,572.30 crore |
| Book Running Lead Managers | Kotak Mahindra Capital, J.P. Morgan, Citigroup, Axis Capital, Motilal Oswal |
| Registrar | MUFG Intime India Pvt. Ltd. |
Financials Snapshot
| Particulars (in ₹ Cr) | FY23 | FY24 | FY25 | Q1FY26 |
|---|---|---|---|---|
| Total Income | 1,260.9 | 2,796.0 | 4,061.6 | 948.5 |
| EBITDA | 398.8 | -780.9 | 2,371.0 | 418.8 |
| PAT | 457.7 | -805.5 | 1,824.4 | 378.4 |
| Net Worth | 3,316.8 | 2,542.6 | 4,855.4 | 5,995.5 |
| RoNW | – | -31.7% | 37.6% | – |
| PAT Margin | – | -28.8% | 44.9% | – |
Revenue Growth: 45% YoY (FY24–FY25)
PAT Growth: 327% YoY
Objects of the Issue
The IPO proceeds from the fresh issue (₹ 1,060 crore) will be used for:
- Cloud Infrastructure Expansion – ₹ 152.5 crore
- Brand Building & Performance Marketing – ₹ 225 crore
- Capital Infusion into Groww Creditserv (NBFC arm) – ₹ 205 crore
- Funding for Margin Trading Business via GIT Subsidiary – ₹ 167.5 crore
- Potential Acquisitions & General Corporate Purposes – Remaining amount
Valuation and P/E Comparison
| Company | P/E Ratio (FY25) |
|---|---|
| Groww (Post IPO) | 40.8x |
| Angel One | 25.4x |
| IIFL Securities | 22.1x |
| 360 One Wam | 47.6x (Highest) |
| Motilal Oswal | 29.8x |
| Industry Average | ~31x |
Analysis: Groww’s valuation at 40x P/E is above industry average and close to premium players like 360 One Wam. The valuation seems stretched, factoring in strong growth potential but limited margin for error.
Reasons to Invest in Groww IPO
1. Rapidly Expanding Fintech Platform
Groww has consistently added millions of new users every year, expanding its customer base in Tier 2 and Tier 3 cities, which can drive future revenue growth.
2. Strong Financial Turnaround
After a loss in FY24, Groww posted robust profitability in FY25 with over ₹ 1,800 crore PAT, highlighting operational efficiency.
3. Diversified Revenue Streams
Beyond broking, Groww’s mutual fund distribution, AMC business, and credit offerings position it as a full-stack wealth management player.
4. Scalable Technology Infrastructure
Its proprietary tech stack ensures seamless scalability with minimal incremental cost, driving long-term margin expansion.
5. Rising Digital Adoption
With growing retail participation and digital financial literacy, the company is well-placed to benefit from India’s fintech boom.
Risk Factors of Groww IPO
1. High Valuation Risk
At 40x earnings, the IPO leaves little room for valuation re-rating if growth slows. Investors may face short-term volatility.
2. Dependence on Market Volumes
A large portion of Groww’s revenue depends on trading activity and investor sentiment. Any prolonged market downturn can impact revenue.
3. Rising Competition
The fintech and broking space is highly competitive, with Zerodha, Angel One, and Upstox posing strong challenges.
4. Regulatory Risks
Being in a regulated industry, any changes in SEBI norms (like MTF or commission rules) could impact profitability.
5. OFS by Early Investors
A large portion of this IPO is Offer for Sale (₹5,572 crore), indicating partial exit by venture capital investors — a mild negative signal for new entrants.
How to Apply for Groww IPO
Investors can apply through:
- UPI-based IPO application via Groww app, Zerodha, or any ASBA-enabled bank app.
- Net banking (ASBA route) through banks like HDFC, ICICI, SBI, Axis, etc.
- Minimum lot: 150 shares, requiring ₹15,000 for retail investors.
Groww IPO GMP (Grey Market Premium)
As of October 30, 2025, Groww IPO is commanding a GMP of around ₹55–₹60 per share, implying a listing gain potential of ~55-60% over the upper price band.
(However, GMPs are unofficial and fluctuate frequently; they should not be the sole basis for investment decisions.)
Conclusion – Should You Invest or Avoid Groww IPO?
Groww IPO offers investors an opportunity to participate in one of India’s most promising fintech success stories. The company has displayed rapid revenue growth, profitability turnaround, and a scalable digital model.
However, the IPO is priced aggressively at 40x P/E, which could limit short-term upside post-listing.
Verdict: ✅ Invest for long-term growth potential but expect near-term valuation pressure.
Those seeking quick listing gains should track GMP trends closely, while long-term investors can consider this as a digital financial ecosystem play.
FAQs – Groww IPO
1. What are Groww IPO dates?
Opens on November 4, 2025 and closes on November 7, 2025.
2. What is Groww IPO price band?
₹95 to ₹100 per share.
3. What is the minimum investment for Groww IPO?
Retail investors can invest a minimum of ₹15,000 for 1 lot (150 shares).
4. What is Groww IPO listing date?
Tentatively scheduled for November 12, 2025 on NSE and BSE.
5. Who are Groww’s promoters?
Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh.
6. What is the GMP for Groww IPO?
As per market sources, ₹55–₹60 per share (subject to change).
7. Should I apply for Groww IPO?
Yes, for long-term investors seeking exposure to India’s digital investing ecosystem, Groww IPO is worth considering despite high valuation.
Disclaimer:
Investing in IPOs involves market risks. The above analysis is for educational purposes and should not be considered investment advice. Please consult your financial advisor before making any investment decisions.
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