Strong Listing Day Gains? Groww IPO GMP Shoots Up By More Than A Third

The grey market premium for Billionbrains Garage Ventures Ltd. or Groww's initial public offering climbed 35% on Thursday to indicate a potential listing at Rs 113.5.

The IPO's GMP was Rs 10 for the past couple of days and shot up to Rs 13.5 ahead of its D-street debut between Nov. 4 and Nov. 7. The book-building offer consists of a fresh issue of up to Rs 1,060 crore and an offer for sale of 55.7 crore shares worth up to Rs 5,572 crore.

Notably, the GMP does not represent official data and is purely based on speculation.

Investors can place bids in the price range of Rs 95 and Rs 100, according to a public advertisement. The minimum bid lot size is 150 equity shares of face value of Rs 2, requiring an investment of Rs 15,000 on the upper price band. The portion for retail investors is capped at 10% of the IPO offer.

Billionbrains Garage Ventures, backed by Microsoft Chief Executive Officer Satya Nadella, will use funds raised in the IPO fresh issue to expand margin trading, unsecured lending, wealth management, and possibly inorganic growth, as per offer documents.

The company will finalise the share allotment on Nov. 10 and credit them by Nov. 11 into the demat accounts. Groww will list on the stock market on Nov. 12.

Based on the upper price band, the company is valued at Rs 92,074 crore. Investors offloading their stake in the platform include Peak XV, Y Combinator, Ribbit Capital, Tiger Global, and Kauffman Fellows.

The bankers handling the offer include JPMorgan, Kotak Mahindra Capital, Citigroup, Axis Capital, Citigroup and Motilal Oswal.

The fintech major began in 2016 as a mutual fund investing platform and expanded its offerings by introducing stocks, IPOs, and ETFs in 2020. The platform was valued at $3 billion in its last funding round in 2021, which was led by Iconiq Growth, along with other investors like Alkeon, Lone Pine Capital and Steadfast.