Groww IPO GMP at ₹13 as bidding for ₹6,632 crore issue enters final day

The bidding for the Billionbrains Garage Ventures Ltd. Initial Public Offering (IPO) enters its final day on Friday, November 7, ahead of more issues lining up for investor attention.

The ₹6,632 crore issue has been subscribed 1.64 times the total number of shares on offer at the close of bidding on Thursday. Subscription has been led mainly by retail investors.

Groww has received bids for 59.82 crore shares so far, compared to the 36.47 crore shares on offer for the IPO. The 10% portion reserved for retail investors has already been subscribed 5.02 times the total shares on offer, with bids for 33.28 crore shares compared to the 6.63 crore on offer.

The portion reserved for non-institutional investors has also been subscribed 2.26 times the total shares on offer.

However, the portion reserved for institutional investors (QIBs), for whom 75% of the IPO has been reserved, was subscribed only 20% by the close of bidding on Thursday. Institutional bidding generally tends to increase on the final day of the IPO.

Ahead of bidding commencing on the final day, the reports from the unlisted market are suggesting that shares of Groww are trading at a 13% premium to their issue price of ₹100 per share, which indicates the Gray Market Premium (GMP) is ₹13. However, these are speculative reports and the original listing price could differ from what the GMP indicates.

Groww had allotted 29.84 crore equity shares to over 100 eligible anchor investors at a price of ₹100 per share, raising a total of ₹2,984 crore before the issue opened for subscription. The IPO was a mix of a fresh issue of equity along with an Offer For Sale (OFS) from existing shareholders.

At the upper end of the price band, Groww could be valued at nearly ₹62,000 crore, making it more valuable than its peers such as Angel One, Motilal Oswal Financial Services, 360 ONE WAM, and Nuvama Wealth Management.

Price band of the issue has been fixed between ₹95 to ₹100 per share. Retail investors can bid for one lot of 150 shares, which will entail a minimum investment of ₹15,000, and then in multiples of 150 thereafter.