Groww IPO: 20% Of All Applications From Zerodha Customers, Says Nithin Kamath

The dynamics of India’s broking industry was highlighted by Zerodha co-founder Nithin Kamath, who revealed that approximately 20% of all IPO applications for rival Groww were placed by Zerodha customers.

Kamath took to X to congratulate Groww Chief Executive Officer Lalit Keshre on the initial public offering, while also highlighting the notable crossover in the retail investor base between the two leading fintech platforms.

The figures that the Zerodha co-founder revealed shows the high number of user overlap and portfolio diversification among retail investors in India's booming investment landscape.

Groww, operating under its parent company, Billionbrains Garage Ventures Ltd, has opened its highly anticipated public issue for subscription, with the IPO set to close on Nov. 7. The price band for the offering is fixed between Rs 95 and Rs 100 per share, with an issue size totaling Rs 6,632.3 crore.

The IPO is structured as a mix of a fresh issue and an offer for sale by existing shareholders, aimed at funding growth initiatives like strengthening cloud infrastructure and investing in subsidiaries.

The first day of bidding for the IPO has come to a close with 57% subscriptions. The subscription in the qualified institutional buyers stands at 10%, while the non-institutional investors portion has been subscribed 59%. The retail-individual-investor section has been subscribed 1.91 times at close.

The GMP for the Groww (Billionbrains Garage Ventures) IPO was Rs 17.25 apiece as of 5:02 p.m. on Nov. 4. This indicates a listing price of Rs 117.25 apiece at a premium of 17.25% on the upper limit of the price band.

The IPO had garnered a little over Rs 2,984 crore from anchor investors on Monday, including Abu Dhabi Investment Authority and the Government of Singapore. This came a day before the opening of the company's Rs 6,632 crore IPO opened for subscription.

The anchor book saw participation from 102 funds, including the Government of Singapore, the Monetary Authority of Singapore, Abu Dhabi Investment Authority, Goldman Sachs and Morgan Stanley, according to a circular uploaded on BSE's website.