Groww IPO: Check unlisted share price, key factors to watch & risks ahead of RHP filing

Groww-parent Billionbrains Garage Ventures may file its red herring prospectus (RHP) anytime soon with the capital market Sebi. Ahead of its IPO, unlisted shares of Groww have received a sharp correction and according to the dealers, the trading of the counter is likely to be halted in a day or two, after company's intimation for the same.

According to the dealers, unlisted shares of Groww have corrected up to 20 per cent from its price at around Rs 145-150 and currently are trading around Rs 120-125 apiece in the pre-IPO market. However, they believe that the stock is still overvalued in the unlisted space and IPO price tag is seen even lower-than-existing prices.

Sandip Ginodia, CEO of Kolkata-based Altius Investech said that the valuations appears to be stretched at current prices, compared to its peers. Groww has growth potential but that won't come overnight as the financial have taken at hit after Sebi's measures to curb trading volumes, he said.

Billionbrains Garage Ventures received approval from the Securities and Exchange Board of India (SEBI) to proceed with its IPO in September 2025. The company is looking to raise around Rs 7,060 crore via IPO, which includes a fresh share sale of Rs 1,060 crore and an offer-for-sale (OFS) of up to Rs 6,000 crore, as per reports.

Hitesh Dharawat, Owner of Mumbai-based Dharawat Securities expects the price band of Groww IPO around Rs 100-110 but believes that the company will be dented by muted Q2 earnings and subdued guidance of peer companies. "Groww has shown strong financials but the industry is looking at disruption might be caused after Jio's entry in the broking foray," he said.

Incorporated in 2017, Bengaluru-based Groww is a fintech company that provides retail investors direct-to-customer digital investment platform that provides wealth creation opportunities to customers through multiple financial products and services. It offers a platform to invest in mutual funds, stocks, F&O, ETFs, IPOs, digital gold, and US stocks.

Groww is India’s largest retail broker in terms of active clients and Q1FY26 cash/F&O retail market share of 23.1 per cent/14.4 per cent, Nuvama Institutional Equities said. "We also expect Groww to be less hurt by any reduced F&O trading as we estimate a 5 per cent drop in F&O orders shall drag Groww’s Q1FY26 revenue/EBDAT/APAT by 2.5 per cent/4.8 per cent/4.4 per cent," it said.

Groww’s activation rates over FY24–Q1FY26 are at 33 per cent-plus driving down CAC per active client to just Rs 1,441 in FY25, yielding strong EBDAT margin of 59.7 per cent. Apart from competitive pricing, technology and user interface are key factors driving success. Besides broking, Groww has expanded into lending, asset and wealth management, insurance distribution—businesses yet to scale up, Nuvama adds.

Data showed Groww's active clients stood at 1.19 crore compared with 71 lakh for Zerodha, 69 lakh for Angel One and 23 lakh for Upstox FY26TD. In terms of active client share, it accounted for 26.3 per cent share against Zerodha's 15.6 per cent, Angel One's 15.2 per cent and Upstox's 5 per cent. Nuvama noted that Groww has one of the lowest fee charges in the industry.

The net proceeds from the issue shall be utilized towards expenditure towards cloud infrastructure, brand building and performance marketing activities, investment in one of the material subsidiaries, funding inorganic growth through unidentified acquisitions and general corporate purposes.

Groww is currently commanding a grey market premium (GMP) of Rs 10 apiece. Kotak Mahindra Capital Company, JP Morgan India, Citigroup Global, Axis Capital and Motilal Oswal Financial Services are the booking running lead managers for the IPO, while MUFG Intime India has been appointed as the registrar for the issue. Shares of the company shall be listed on both NSE and BSE.