Top domestic mutual funds, AMCs and marquee global funds queue up for Groww IPO

Wealth-tech firm Groww’s Initial Public Offer anchor book has seen participation from top domestic mutual fund houses and insurance companies, leading global sovereign wealth funds, and marquee global investment firms, even as the issue opens for public on November 4.

The country’s largest brokerage firm by active investors, Groww, has seen anchor-book bids, with 57 per cent subscription from domestic funds and 43 per cent from foreign investors. The company has raised close to Rs 3,000 crore from anchor investors.

Groww has seen interest from the country’s high-net-worth individuals and other large Asset Management Companies (AMCs) in the country, such as Sunil Singhania of Abakkus, Utpal Sheth of Trust AMC, Madhusudan Kela of Singularity AMC, Sanjay Dangi of Authum Invest, and Vikas Khemani of Carnelian, among others.

The Bengaluru-based brokerage firm, which is one of the most profitable startups, saw three of the biggest sovereign wealth funds, Singapore government’s GIC, Norway’s Norges Bank Investment Fund and  Abu Dhabi Investment Authority (ADIA) participate in the anchor book.

Several marquee global investment firms such as Dragoneer Investment Group, Couatue Management and Sequoia Capital Global Equities — marking SCGE’s first-ever investment in an Indian IPO and its first direct India investment since its exit two years ago.

Among the other major long-term global public market investment firms that participated include WhiteOak Capital, Goldman Sachs Asset Management, French AMC Amundi, Mirae Global Asset Management, Wellington Management, and Matthews Asia.

Large domestic insurance firms like HDFC Life Insurance, ICICI Prudential Life Insurance and Bharti Axa Life Insurance have submitted bids for Groww’s IPO.

Anchor book bids

On November 3, Moneycontrol reported that Groww has received bids worth Rs 50,000 crore from large domestic mutual funds and foreign funds before the IPO opens for public on November 4, according to a couple of banking sources.

The anchor book, estimated at around Rs 3,000 crore, has been oversubscribed more than 15 times, with participation from eight out of the 10 large mutual funds, including SBI Mutual Fund.

The Rs 6,632 crore initial public offering (IPO) from one of India’s most profitable startups will value the Bengaluru-based brokerage firm at around $7 billion and has attracted strong interest from domestic funds, one of the sources added.

IPO size and price

On October 29, Groww announced its IPO price band of Rs 95–Rs 100, valuing the company at around Rs 62,500 crore ($7.1 billion). The Rs 6,632 crore issue includes a fresh issue of Rs 1,060 crore and an offer for sale of Rs 5,572 crore.

For FY25, the Bengaluru-based fintech reported revenue of Rs 4,056 crore and net profit of Rs 1,899 crore, with net margins of 44.85%. The IPO opens for subscription from November 4 to 7, 2025.

Unlike many of its New Economy peers, Groww is entering the market as a profitable fintech, pitching itself with a price-to-earnings ratio of 33.5 – higher than traditional brokerages but among the most reasonable in India’s startup space.

The allotment of IPO shares will be finalised by November 10, while Groww shares will be available for trading on the BSE and NSE effective November 12.

The company will issue fresh shares worth Rs 1,060 crore, while investors Peak XV Partners, YC Holdings, Ribbit Capital, Internet Fund, Kauffman Fellows Fund, Alkeon Capital Management, Propel Venture Partners, Sequoia Capital Global will be selling 55.72 crore equity shares (worth Rs 5,572.3 crore) via offer-for-sale route.

Largest shareholders

Promoters, including Lalit Keshre, Harsh Jain, Ishan Bansal and Neeraj Singh hold 28.04 percent stake in Groww, while public shareholders own 71.96 percent shareholding in the company.

Venture capital firm Peak XV Partners Investments is the largest investor in Groww with 19.87 percent stake.

Ribbit, a global investment organisation that invests in early-stage companies, holds 14.78 percent stake, while early-stage venture investor YC has 13.24 percent shareholding in Groww. Tiger Global Management’s Internet Fund VI owns 6.04 percent shares.

IPO proceeds for growth

Groww will spend Rs 152.5 crore of fresh issue proceeds for cloud infrastructure, and Rs 225 crore for brand building and performance marketing activities.

Further, Rs 205 crore will be invested in subsidiary Groww Creditserv Technology, a non-banking financial company, for augmenting its capital base, and Rs 167.5 crore for funding the margin trading facility business of subsidiary Groww Invest Tech. The remaining funds will be used for its inorganic growth through unidentified acquisitions and general corporate purposes.

The company has reserved up to 75 percent of IPO shares for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent shares for retail investors. Investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter.

June quarter financials

Groww parent recorded net profit at Rs 378.4 crore for the quarter ended June 2025, rising 11.9 percent compared to Rs 338 crore in same period last year, but revenue during the same period declined 9.6 percent to Rs 904.4 crore, against Rs 1,000.8 crore.

The merchant bankers managing the Groww IPO are Kotak Mahindra Capital Company, JP Morgan India, Citigroup Global Markets India, Axis Capital, and Motilal Oswal Investment Advisors.