Groww IPO: Firm files updated draft papers with SEBI to raise around ₹7,000 crore; 10 things to know

Groww is a stockbroking firm.

Here are the ten key things you need to know.

• The IPO comprises a fresh issue of equity shares worth ₹1,060 crore along with an offer for sale (OFS) component of 57,41,90,754 equity shares by promoters and investor shareholders, according to the updated draft red herring prospectus (DRHP) filed on Tuesday.

• The OFS component is expected in the range of ₹5,000-₹6,000 crore.

• With this, the company is seeking a valuation of $9 billion, PTI reported, citing people familiar with the matter.

• As a part of the OFS, the company's promoters -- Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal -- each offering up to 1 million shares. Besides, investors such as Peak XV Partners Investments VI-1, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI Pte. Ltd., and Kauffman Fellows Fund, L.P. are offloading shares.

• Groww's founders own 27.97% of the company and have filed as promoters of the company with a 20% lock-in for 1.5 years from the time of listing. In the IPO, they are offering to sell only 0.07% of the total shares of the company.

• The company, which is backed by marquee investors such as Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, plans to use proceeds of the IPO for investment in technology development and business expansion.

• Of the fresh issuance, ₹225 crore will be used for brand building and performance marketing activities, and ₹205 crore will be invested in Groww Creditserv Technology Private Limited (GCS), the NBFC arm, to augment its capital base.

• Additionally, ₹167.5 crore will be infused into Groww Invest Tech Private Limited (GIT) to fund its margin trading facility (MTF) business, while ₹152.5 crore has been earmarked towards strengthening cloud infrastructure. The balance will be utilised for funding inorganic growth through acquisitions and for general corporate purposes.

• Headquartered in Bengaluru, Groww filed draft papers in May with markets regulator SEBI for an IPO through a confidential pre-filing route and had received SEBI's approval in August. Following this, companies are required to file an updated DRHP before filing an RHP.

Groww opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the DRHP until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.

• To manage the offering, Groww roped in JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets Private Ltd, Axis Capital Ltd, and Motilal Oswal Securities Ltd.

About Groww

Founded in 2016, Groww is one of the leading stockbrokers in the country.

In FY25, the stockbroking firm, according to a PTI report, posted a profit of ₹1,824 crore, while Q1 FY26 profit stood at ₹378 crore.

On the mutual funds side, Groww accounted for ₹34,000 crore of SIP inflows in FY25, or 11.8% of industry totals, according to AMFI data, the PTI report said.

The company has recently expanded into wealth management, commodities, a margin trading facility (MTF), and loans against shares, moves it sees as part of its longer-term growth strategy.

Upcoming IPOs

The week starting September 15 will see at least six initial public offerings open for subscription. They include three mainboard IPOs—Euro Pratik, VMS TMT, and Ivalue Infosolutions—and three SME offers from TechD Cybersecurity, Sampat Aluminium, and JD Cables.

Stock listings scheduled this week include Vashishtha Luxury Fashion (September 15), Nilachal Carbo Metalicks (September 16), Krupalu Metals (September 16), Taurian MPS (September 16), Karbonsteel Engineering (September 16), Shringar House of Mangalsutra (September 17), Urban Company (September 17), Dev Accelerator (September 17), Jay Ambe Supermarkets (September 17), Galaxy Medicare (September 17) and Airfloa Rail Technology (September 18).

Besides, six firms, including Canara Robeco Asset Management Company and Hero Motors, have secured SEBI's approval to launch maiden public offers, an update with the markets regulator showed on Monday.

Other firms such as Pine Labs, Orkla India, Manipal Payment and Identity Solutions and Emmvee Photovoltaic Power have also received regulatory nods to float IPOs.