Groww shares make strong market debut; list at 14 percent premium
Groww, parent company Billionbrains Garage Ventures, lists on Nov 12th after its Rs 6,632 crore IPO was subscribed 17.05 times. The Grey Market Premium (GMP) suggests a modest 5% listing gain, with shares potentially opening around Rs 105. Investors are watching for its stock market debut, despite a lukewarm GMP.
Mumbai: Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, is made its stock market debut on 12th November. The shares of Billionbrains Garage Ventures listed with a premium of 14 per cent against the issue price of Rs 100. The stock made its debut at Rs 114 on BSE and Rs 112 on NSE, premium of 12 per cent. Later, the counter climbed 19.52 per cent each to Rs 119.52 and Rs 118.92 apiece, on the BSE and NSE, respectively.
The IPO worth Rs 6,632 crore did not receive a very good response from investors. This issue was subscribed only 17.05 times, with the highest demand coming from institutional investors (QIBs). Investors' eyes are now on its listing. So let's find out what its grey market premium i.e. GMP is indicating.
The subscription details of the IPO were fine. QIB category subscribed 22.02 times, Non-Institutional Investors (NII) category 14.20 times and Retail Investors (RII) category 9.43 times. Overall, the company received 6,41,87,00,400 bids whereas the shares offered were 36,47,76,528. That means it was subscribed more than 17 times.
Groww IPO GMP
Groww's atmosphere is relaxed even in the grey market. According to Investorgain.com, the Grey Market Premium (GMP) of Groww IPO has been recorded at Rs 5 as per the morning update on 12 November. That is, the stock can open around Rs 105 at the time of listing. This is only 5% more than the issue price of Rs 100.
This IPO included a fresh issue of Rs 1,060 crore and an Offer for Sale (OFS) of Rs 5,572.30 crore. The company will use the funds raised for marketing, technology development, NBFC capital infusion, inorganic growth and meeting working capital needs.
The book running lead manager of this IPO is Kotak Mahindra Capital Company Limited, while MUFG Intime India Pvt. Ltd is playing the role of registrar.
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