The listing of Billionbrains Garage Ventures Ltd. (Groww IPO) will be in focus as investors await the company's debut on the stock market.
Shares of Billionbrains Garage Ventures Limited (Groww IPO) will list on the BSE and NSE on, Wednesday, November 12. The share allotment status for the Groww IPO was finalised on Monday, November 10. Successful bidders were allotted the shares on Tuesday, November 11, and refunds were also issued on the same day.
Despite the Groww IPO closing with an overwhelming 17.60 times subscription, the Grey Market Premium (GMP), an unofficial barometer of listing expectations, has slid from a high of Rs 16.5 to Rs 6. This means GMP has declined by as much as 64%. However, the current GMP still indicates positive listing gains of up to 6% for investors, while a muted GMP suggests investors are turning cautious about near-term listing gains.
According to BSE data, the Rs 6,632.30-crore IPO received bids for 641.87 crore shares against 36.48 crore shares on offer.
Here’s a look at what the latest market trends indicate for the IPO of Billionbrains Garage Ventures.
Groww Share Price (Expected)
The Grey Market Premium (GMP) for the Groww IPO stood at Rs 6 per share as of 7:00 a.m. on November 12. Based on the upper price band of Rs 100, the unlisted shares of Billionbrains Garage Ventures were trading at Rs 106, indicating an estimated listing gain of 6%.
This means that shares of Billionbrains Garage Ventures (Groww) are expected to list on BSE and NSE at around Rs 106 per share, with a premium of around 6% when the IPO makes it debut on Dalal Street.
While the GMP for the mainboard offer had initially increased ahead of its launch on November 4, it has since shown a consistent decline over the last few days. The highest GMP recorded for the Groww IPO was Rs 16.7 on November 1, which then slid to Rs 16.5 on November 3. A further drop was observed when the GMP touched Rs 14 on November 4, the day the IPO opened. The GMP declined further to Rs 5 when the IPO concluded its subscription on November 7, only to gain marginally on the listing day.
Groww IPO: Key Details
The Billionbrains Garage Ventures (Groww) IPO is a book-building issue worth Rs 6,632.3 crore. It comprises a fresh issuance of 10.6 crore shares, valued at Rs 1,060 crore, and an offer-for-sale (OFS) of 55.72 crore shares, amounting to Rs 5,572.3 crore.
The price band for the IPO was set at Rs 95 and Rs 100 per share.
Kotak Mahindra Capital Ltd. is the book running lead manager and MUFG Intime India Pvt. is the registrar of the issue.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
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