Groww IPO: Fresh Issue Worth Up to Rs 10.6 Billion, Existing Shareholders Selling 574.2 Million Shares; Strong Q1 Performance Signals Robust Growth

Groww, India’s leading stock broking and investment platform, is gearing up for a highly anticipated Initial Public Offering (IPO) with a fresh issue of shares worth up to Rs 10.6 billion (Rs 1,060 crore). Alongside this, existing shareholders plan to sell approximately 574.2 million shares, providing a substantial liquidity event while enabling early investors to realize gains.

 

Key Highlights:

 

The updated draft red herring prospectus (DRHP) filed by Groww reveals an IPO structure comprising both a fresh issue and an Offer for Sale (OFS) by existing shareholders, targeting a valuation near $9 billion (about Rs 70,000 crore).

 

Book running lead managers for the IPO include leading financial institutions Kotak Mahindra Capital and J.P. Morgan, reflecting strong market confidence.

 

Groww reported consolidated revenue from operations of Rs 9.04 billion and a net profit of Rs 3.78 billion for the June quarter FY26, demonstrating robust financial health and a growing customer base.

 

The net proceeds from the fresh issuance will be channeled into investments to enhance Groww Creditserv Technology and Groww Invest Tech platforms, pivotal to expanding lending and advisory services.

 

Additionally, proceeds will fund cloud infrastructure enhancements and marketing campaigns to sustain market leadership and scale customer engagement.

 

The inclusion of a large OFS component offers liquidity to early-stage investors, including venture capital firms and founders, while ensuring capital infusion for business expansion.

 

Groww’s business trajectory reflects rapid adoption of digital investing in India, boasting over 18 million active customers and a market share of around 26% in NSE retail broking as of mid-2025.

 

Market and Strategic Implications:

 

Groww’s IPO is among the largest in the Indian fintech space, poised to attract significant retail and institutional investor interest. The capital raise aligns with Groww’s ambitions to deepen product innovation, expand lending capabilities, and reinforce digital infrastructure amid growing competition.

 

Financial metrics indicate strong profitability, with effective cost management and increased customer monetization. These provide confidence in the company’s sustainable growth prospects as it scales into wealth management and alternate financing.

 

The large sale by existing shareholders introduces valuation clarity and enables diversified ownership post-listing, balancing growth capital with investor returns.

 

In summary, Groww’s IPO with a fresh issue of Rs 10.6 billion and major selling by existing shareholders reflects a maturation milestone for India’s digital investing ecosystem, signaling a landmark event for fintech IPOs in 2025.

 

Sources: Groww official filings, Moneycontrol, Economic Times, The Hindu BusinessLine, Marketscreener (September 2025)