Groww IPO Day 2 Highlights: Issue booked 1.64x — GMP dips to 11%. Time to apply?

Groww IPO was booked 1.64x on the second day of the bidding process on Thursday. Here's how different categories were subscribed:

QIB: 0.20x

NII: 2.26x

Retail: 5.02x

Domestic: Leads discount brokers with a 26.3% market share (vs. Zerodha 18%, Angel One 15.3%, Upstox 10%). Outpaces peers in active client addition (35.5% YoY in FY25) and retention (85%+).

Data source: Deven Choksey Research

Groww IPO GMP dipped to ₹11.5 on Thursday, from ₹14.75 a day ago and ₹16.5 on Tuesday (the day IPO kicked off). At the present GMP, Groww IPO shares could list at ₹111.5, a premium of 11.50% over the issue price.

Groww is not just a stockbroker going public; it is an emerging fintech infrastructure company—layering credit, data, and distribution on top of its transaction engine. The growth triggers outlined above represent a flywheel that can compound both its user base and profitability for several years, provided execution discipline and regulatory navigation remain strong. Owing to these strong developments, we recommend SUBSCRIBE.

India’s digital investing industry stands at a powerful inflection point driven by the rising financialisation of household savings, record demat account openings, and the rapid shift of investors from traditional assets like gold and FDs toward equities and mutual funds. Retail participation now forms a structural rather than cyclical base, aided by technology, UPI integration, and growing financial literacy. The online broking industry, once dominated by full-service players, is being reshaped by discount and tech-led platforms like Groww, which combine low-cost execution with intuitive digital experiences.

With over 200 million demat accounts, surging F&O and margin trading volumes, and mutual fund SIP inflows at all-time highs, the market size for digital investment platforms is expanding at a 25–30% CAGR. Against this backdrop, Groww is strategically positioned to capture this wave of financial inclusion and digitisation: its product-led model, deep retail reach, and multi-asset offerings (equities, F&O, MFs, IPOs, and now credit) align precisely with the direction in which India’s retail investment ecosystem is headed.

As the market formalises and trust-based digital brands dominate investor mindshare, Groww is poised to emerge as a category-defining fintech leader in India’s next decade of wealth creation.

Derivatives are now the largest monetisation rail for discount brokers. Groww’s next leg of growth is driven by more active F&O traders and higher option-premium turnover, supported by reliability/latency investments and simple flows. In buoyant markets this ratchets operating leverage (fixed tech + ops), while in cooler tapes disciplined risk controls avoid churn. The company highlights strong recent profitability and scale, creating room to reinvest into infra without compressing unit economic.

Groww, India’s leading retail investment platform, combines a tech-first model, intuitive design, and strong customer trust to drive scalable, profitable growth. Despite FY24’s one-time losses, its diversified products, low CAC, and rising ARPU highlight strong fundamentals. At ₹100, valuations (P/E 29.94x, P/B 11.25x) remain attractive — we recommend SUBSCRIBE for listing gains and long-term returns.

Groww IPO was booked 1.38x so far on the second day of the bidding process on Thursday. Here's how different categories were subscribed:

QIB: 0.15x

NII: 1.77x

Retail: 4.49x

The company has built most of its technology in-house, creating a robust technology stack to deliver a differentiated experience at low cost. This approach enables them to provide a better experience for their customers. With systems and infrastructure customized as the backbone of their operations, they can respond quickly to changes, whether driven by customer demand or regulatory and compliance requirements. This setup helps sustain product velocity, continuous innovation, and the reliability and stability of the platform, while ensuring business continuity.

• Uninterrupted access to the company’s technology platform is critical to its operations. System failures or interruptions could negatively affect the availability or performance of its website, mobile applications, or platform, thereby adversely impacting its business, financial condition, and results of operations. Additionally, any actual or perceived cybersecurity, data, or privacy breach could disrupt operations and damage the company’s reputation and brand.
• The company is required to maintain statutory and regulatory licenses, registrations, and authorizations for its operations and is subject to extensive compliance requirements. Failure to obtain, maintain, or renew such licenses, registrations, or authorizations, or to comply with statutory and regulatory obligations, could have a material adverse effect on its business, financial condition, and results of operations.
• The company operates in a highly competitive environment, facing competition from existing players as well as emerging technologies such as artificial intelligence and machine learning. Inability to effectively compete with existing or new market participants could materially and adversely affect the company’s business, financial condition, cash flows, and results of operations.

On the valuation front, at the upper band of the issue price range, the company is valued at a P/E of 31.3x based on FY25 earnings. Considering its strong financial performance, technological edge, and growth prospects, we recommend a “SUBSCRIBE” rating from a medium- to long-term investment perspective, said BP Wealth.

The company operates an asset-light, technology-led model, leading to strong operating leverage. Its Adjusted Cost to Operate declined from 26.32% of revenue in FY23 to 13.77% in FY25. Its unit economics are positive, with the platform generating high contribution margins as customer acquisition costs remain low, and over 83% of customers are acquired organically. This low CAC, coupled with high retention, enables the company to convert profits into free cash flow.

The company enjoys a 52.74% CAGR in active users between FY23 and Q1FY26. Moreover, its users are present across 98.36% of Indian pin codes, with approximately 81% of users located outside the top six cities.

Groww captured 40.08% of net NSE active user additions in December 2024, and its Retail Cash ADTO market share rose from 17.71% in Q2FY25 to 21.60% in Q3FY25. With an average user time of 65.5 minutes per day on the platform in FY25 and a DAU/MAU ratio above 56%, the company demonstrates strong user engagement. Additionally, 77.70% of users remain active after three years. This sustained engagement builds strong switching barriers and long-term monetization opportunities as users progress through multiple product categories.

Groww IPO was booked 1x so far on the first day of the bidding process on Thursday. Here's how different categories were subscribed:

QIB: 0.10x

NII: 1.20x

Retail: 3.38x

The company plans to keep expanding its customer base by strengthening its brand and adding new products such as wealth management (“W by Groww”), bonds, commodities, and loans against securities. The TAM of India's wealth and investment management industry is expected to grow from INR 1.1 lakh crore in FY25 to INR 2.2–2.6 lakh crore by FY30. Penetration is still low, with just 16–18% of adults having demat accounts and about 5% active broking accounts in CY24, as opposed to 62% in the U.S.

With a fast-growing retail investor base poised to increase from 6.6–7.2 crore to 12–13 crore users, along with its extensive digital presence in 98.36% of Indian pin codes and dominance in active NSE users, the company is well positioned to capture this opportunity. Groww aims to use its strong tech platform and low-cost, asset-light model to reach more users across India and improve profitability.

With revenue growing sharply at an 85% CAGR between FY23 and FY25 and profit margins improving to 45%, it expects to maintain steady growth through organic user additions, high customer retention, and rising average revenue per user. At the upper band of INR 100, the issue is valued at a P/E ratio of 33.84x, based on an EPS of INR 2.96 per share. We are recommending a “Subscribe for listing gain” rating for this issue.

Groww IPO Day 2 LIVE: Groww plans to use the fresh proceeds from the initial share sale for the following purposes:

• Expenditure towards cloud infrastructure – ₹152.5 cr

• Brand building and performance marketing activities – ₹225 cr

• Investment in one of the Material Subsidiaries, GCS (an NBFC), for augmenting its capital base – ₹205 cr

• Investment in one of the Material Subsidiaries, GIT, for funding its MTF business – ₹167.5 cr

• Funding inorganic growth through unidentified acquisitions and general corporate purposes

Groww IPO was booked 91% so far on the second day of the bidding process on Thursday. Here's how different categories were subscribed:

QIB: 0.10x

NII: 1.08x

Retail: 3.08x

Groww's revenue from operations grew at a CAGR of 84.88% from Fiscal 2023 to Fiscal 2025, making it one of the two fastest-growing companies among the Top 10 brokers by NSE active customers as of June 30, 2025, according to the Redseer Report. Additionally, its Adjusted EBITDA and Profit/(loss) margin have improved.

Further, their revenue per employee increased from ₹10.6 million in Fiscal 2023 to ₹26.1 million in Fiscal 2025, and ₹6.4 million in the three months ended June 30, 2025. Similarly, its Adjusted EBITDA per employee rose from ₹3.9 million in Fiscal 2023 to ₹15.4 million in Fiscal 2025, and ₹3.6 million in the three months ended June 30, 2025, demonstrating strong operating leverage.

Groww IPO opened for the second day today. The issue was booked 57% at the end of the first day, led by retail demand. The retail investor segment was fully subscribed at 1.91 times, while the non-institutional investor category saw 59% subscription. The Qualified Institutional Buyers (QIB) portion received 10% of the bids on Day 1.

Investors can apply for the bids on second day till 5 pm.

At the upper price band, the company is valued at 33.8x FY25 P/E, implying a post-issue market capitalization of ₹6,17,360 million. Groww seeks to strengthen its pan-India brand by focusing on trust, transparency, and financial inclusion while expanding its customer base organically through word-of-mouth and operating leverage. The company also plans to diversify its product suite with offerings like MTF, commodity derivatives, API trading, wealth management (‘W’), LAS, and Bonds to enhance engagement, wallet share, and AARPU. Considering these factors, the IPO appears fully priced and is rated “Subscribe – Long Term.”

— Anand Rathi

Groww IPO is trading at a grey market premium (GMP) of ₹14.75. Based on the upper end of the price band at ₹100.00 per share, the estimated listing price is around ₹114.75. This suggests an expected listing gain of approximately 14.75% per share over the issue price.