The Indian retail investor holdings have grown more than 10X over the past decade against the backdrop of high economic growth. In such a scenario, we have brought to you a detailed analysis of the Groww IPO. Groww has filed their IPO as Billionbrains Garage Ventures Limited.
The IPO Groww is amongst the leading brokerage platforms in India. The merchant bankers for the IPO are Motilal Oswal Securities Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, Citigroup Global Markets Private Limited and JP Morgan India Private Limited.
Note: For 50% of the shares, the anchor lock-in period expires 30 days following the actual allocation, and for the remaining part, it ends 90 days later.
Groww is one of the leading brokerage platforms in India. The company profile highlights the following key aspects. It is important to understand them to assess the Groww IPO charges.
Along with other securities, investors can also purchase stocks from IPO in Groww app. Along with mutual funds, stocks and other assets, the IPOs on Groww app is also a key feature.
A keen look at the founders might be necessary for a privately held startup like Groww before the Groww IPO.
Groww has chosen to file its Draft Red Herring Prospectus with SEBI through a confidential pre-filing route. Therefore, the Groww IPO list is restricted in its availability.
The IPO closing time of Groww IPO, along with its opening dates are discussed below.
However, certain anticipated takeaways from the timeline are discussed below.
Groww has already filed a confidential DRHP with SEBI that is not accessible to investors.
SEBI might approve the Groww IPO in two months based on the DRHP.
If approved, the company has to file an updated DRHP that will be accessible to the public.
However, in a press briefing, the company clarified that its pre-filing doesn’t guarantee an IPO.
Now, let us also look at how the peers of Groww are performing in the market.
Shares are credited to your demat account. If you don't already have one, go here to view a range of brokers and create a demat account now.
The table below shows the anticipated highlights of the Groww IPO, including the Groww IPO price and other details.
The table below shows some of the previous funding rounds of Groww.
Since Groww is still a privately held company, its financial statements are not publicly available. However, certain highlights can be drawn from reliable sources like ICRA and others.
The table below explains the liquidity position further.
The key ratios that can help analyse the financial health are discussed below.
Since BGV, the parent company of Groww is a key contributor to its income stream, a brief look at its financial standing might aid investor decision-making. More than ₹500 crores worth of equity capital has been invested by BGV into GIT to date.
To view a carefully chosen list of brokers and start your demat account right now, click here.
The possible strengths and risks associated with the Groww IPO are discussed below.
Strengths
It has a massive scale of operations and enjoys a prominent brand recall.
It has more than 50 million users resulting in a huge customer base
It is one of the leading players
The fiscal position of the company seems to grow over time.
Risks
The company uses complex technology that might confuse tech-averse users.
It is dependent on capital market participation. Therefore, fall in capital market participation will impact its user base.
It works in a highly regulated space that might cause bureaucratic delays and missed opportunities.
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