Billionbrains Garage Ventures Ltd (Groww) IPO – Mainboard
Company Overview
Billionbrains Garage Ventures Ltd, the parent of Groww, is one of India’s largest and fastest-growing digital investment platforms. Incorporated in 2017 and based in Bengaluru, Groww enables retail investors to invest in mutual funds, stocks, F&O, ETFs, IPOs, digital gold, and US stocks, all through a simple and intuitive mobile-first, cloud-native platform. With a pan-India user base exceeding 42 million, Groww has established itself as a trusted fintech brand for new-age investors.
READ FULL DRHP HERE: | SEBI| DRHP BILLIONBRAINS GARAGE
IPO Details
| Parameter | Details |
|---|---|
| IPO Opening Date | November 4, 2025 |
| IPO Closing Date | November 7, 2025 |
| Price Band | ₹95 – ₹100 per share |
| Minimum Lot Size | 150 shares (~₹15,000 at upper band) |
| Issue Size | ₹6,632.30 crore (Fresh ₹1,060 Cr + OFS ₹5,572.3 Cr) |
| Fresh Issue | 10.6 crore shares (₹1,060 crore) |
| Offer for Sale | 55.72 crore shares (₹5,572.3 crore) |
| Face Value | ₹2 per share |
| Listing | November 12, 2025 (BSE, NSE) |
| Anchor investors | Peak XV, YC Holdings, Tiger Global, Sequoia, ADIA, Govt. of Singapore, Goldman Sachs, Morgan Stanley |
Use of Proceeds:
- Investment in subsidiaries
- Cloud infrastructure and technology upgrade
- Brand building and marketing
- Organic/inorganic expansion (unidentified acquisitions)
- General corporate purposes
Financial Performance
| Metric | FY23 | FY24 | FY25 (Est) |
|---|---|---|---|
| Revenue (₹ Cr) | 2,697 | 3,050 | 3,902–4,000 |
| EBITDA (₹ Cr) | 987 | 1,279 | 1,931 |
| EBITDA Margin (%) | ~37% | ~42% | ~49% |
| PAT (₹ Cr) | 401 | 858 | 1,513–1,824 |
| PAT Margin (%) | ~15% | ~28% | ~38%–45% |
| EPS (Basic, ₹) | 0.86 | (1.50) | 3.34–3.50 |
| Return on Net Worth (%) | 13.8% | -31.7% | 37.6% |
| P/E (Post IPO) | ~41x (ttm) |
Analysis:
- Strong Revenue and Profit Growth: Profits surged post a one-time tax hit in FY24 for redomiciling to India; PAT margin is now amongst the highest in Indian fintech.
- Cash-Efficient Model: High EBITDA and PAT margins, cloud-based scalability, and asset-light operations boost return ratios.
Strengths
- Market Leadership: Among the top two retail investment apps, rapidly closing the gap with competitors.
- Operational Leverage: Margin and profitability rise rapidly due to technology and minimal incremental operating costs.
- Agile Product Innovation: Frequent new product launches and strong digital marketing.
- Strong Backers/Anchor Investors: Top global funds and sovereign wealth funds in anchor; strong credibility.
- Consistent User Growth: Customer base expanding at an exceptionally fast, organic rate.
Points of Caution:
- High Market Sensitivity: Reliant on robust equity market sentiment; revenue and AUM may fall sharply in bear phases.
- Platform Reliance: Outages, tech failures, or security risks could rapidly erode trust and user base.
- Brokerage Fee Pressure: Commission-free models or regulatory caps could hurt margins.
- Compliance/Regulation: Heavily regulated space (SEBI, RBI, PMLA); changes or lapses pose operational risk.
- Competitive Intensity: Competes with Zerodha, Angel One, Upstox, discount brokers, and new-age fintechs. Price wars or product arms races may compress profitability.
- Concentration: Brokerage is still the bulk of revenue, dependent on active trading and participation rates.
- Customer Retention: Growth dependent on retention, user engagement, and cross-sell rather than just sign-ups.
- Valuation and Volatility: P/E of ~41x (post-IPO); high for a fintech, but justified for digital moats. Share price may be volatile post listing.
- Anchor Lock-Ins, OFS: Large OFS component—existing shareholders taking partial exit, may lead to post-listing pressure.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.