IPO Note : Billionbrains Garage Ventures Ltd by Choice Broking Ltd
Salient features of the IPO:
* Billionbrains Garage Ventures Ltd. (Groww), Incorporated on January 09, 2018, is a Direct-to-customer (D2C) digital investment platform that provides wealth creation opportunities to customers through multiple financial products and services. The company is India’s largest and fastest growing investment platform by active users on NSE as of June 30, 2025. With Groww, customers can invest and trade in stocks (including via IPOs), derivatives, bonds, mutual funds (including Groww Mutual Fund) and other products. They can also avail margin trading facility and personal loans. Groww provide customers a friendly design and deploy an in-house technology platform to enhance the investing experience.
* This public issue is a combination of fresh issue (Rs. 1,060cr) and OFS (Rs. 5,293.69 - 5,572.30cr). The company will not receive any proceeds from the OFS portion. From the fresh issue net proceeds, the company will be utilizing Rs. 152.5cr for Expenditure towards cloud infrastructure, Rs. 225.0cr for Brand building and performance marketing activities, Rs. 205.0cr for Investment in one of the Material Subsidiaries, GCS, an NBFC, for augmenting its capital base and Rs. 167.5cr for Investment in one of the Material Subsidiaries, GIT, for funding its MTF business. Residual proceeds will be used for general corporate purposes.
Key competitive strengths:
* “Groww” is a well-known and preferred brand for investing across cities, towns and villages in India
* Have high customer retention, engagement and price in-elasticity
* Customer-friendly design for enhancing investing experience
* In-house technology stack to deliver a differentiated experience at low cost
* Strong execution delivering growth and profitability
Business strategy:
* Continue to strengthen the brand
* Launch more products and services for both affluent and aspirational Customers
* Invest in technology
* Pursue strategic acquisitions and investments
Risk and concerns:
* General slowdown in the global economic activities
* High Attrition rate
* Operate in a highly regulated environment
* Any cybersecurity or data breach, could disrupt operations and harm the business
* Competition
Valuation Overview and IPO Rating
At the upper end of its price band, Groww is valued at a P/E of 33.1× (based on TTM EPS of Rs. 3), which appears fully priced. The company reported strong topline growth, while the FY24 loss was driven by a one-time exceptional tax item arising from the merger of Groww Inc. (U.S.) with its Indian entity. Over the years, Groww has built a strong brand and delivered robust expansion. Going forward, its focus on launching new products and services including the recent introduction of Margin Trading Facility (MTF), which has already helped it capture a 1.2% market share and is expected to further strengthen its market position. With continued innovation and customer-centric offerings, Groww is well positioned to drive growth, enhance AARPU, and capitalize on its strong momentum. The company has shown exceptional performance and is poised to scale new heights through its ongoing expansion initiatives. While the valuation appears fully priced compared to peers, we assign a “Subscribe for Long Term” rating, supported by the company’s strong fundamentals and promising growth prospects.
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SEBI Registration no.: INZ 000160131
