Early Groww investors are sitting on multi-fold gains. Here’s how much each stands to make.

Groww’s IPO will come at a sensitive time as regulators tighten rules on derivatives trading and new investor registrations slow, determining whether India’s growing interest in financial markets can continue. In general, many fintechs such as Razorpay, PhonePe, Moneyview, Fibe and Turtlemint are in various stages of preparing for public listing.

Groww has set a price range of ₹95-100″>per share ₹95-100 per share (par value) ₹2) is broadly in line with the valuation it commanded during its Series F round led by Singaporean GIC in July. This issue, which is open for subscription between 4-7 November, consists of a new issue. ₹1,060 crore and offer for sale of up to 557.23 million shares by existing investors. Kotak Investment Banking, JP Morgan, Citi, Axis Capital and Motilal Oswal are the leading bookrunners.

The IPO will see major global investors such as Peak

These early investors are expected to receive multiple returns. Average share buyer Peak XV ₹1.91 is set for a 49.7x gain at the lower end of the price band. Others like YC ( ₹3.45), Ribs ( ₹2.30), GW-E Ribbit Opportunity ( ₹37.87), Tiger Global ( ₹21.97), Alkeon ( ₹37.83), Propulsion Initiative ( ₹5.39), Redwood Capital ( ₹37.94) and Kauffman ( ₹0.51) will generate returns between 2.5x and 186x, mint calculations show.

On: ₹At a valuation of ₹62,000 crore, Groww will trade at around 15 times FY25 earnings. By comparison, Angel One’s current market cap is just over four times its FY25 earnings.

From discount brokerage to market dominance

The returns show how Groww’s early investment in India’s retail investment boom is paying off.

Groww plans to deploy IPO proceeds towards expanding its cloud infrastructure, branding and performance marketing, as well as exploring inorganic growth avenues. It will also transfer funds to its subsidiaries – Groww Creditserv Technology Pvt. Ltd and Groww Invest Tech Pvt. Ltd – to support margin trading facility business.

Earlier this month, Groww completed the acquisition of Bengaluru-based wealth technology startup Fisdom to strengthen its wealth management arm, which the company expects to be a significant source of revenue in the future. It follows that ₹175 crore acquisition of Indiabulls AMC’s mutual fund business in May 2023.

Founded in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww started with the aim of making investments simpler and more accessible. Two years ago, the company moved its parent company from Delaware to India, making Billionbrains Garage Ventures its new holding company.

Groww has 100 million cumulative downloads as of June 30, according to its draft red herring prospectus. The firm has a 26.3% market share among retail investors with 12.6 million active NSE customers, ahead of Angel One’s 15.2% and Zerodha’s 15.6%. Profits more than tripled in the 25th century ₹Revenue increased by 31% to 1,819 crore ₹4,056 crore, driven by growth in average revenue per user, addition of new users and diversification into new segments.