Groww IPO Opens: ICICI Direct Highlights Strengths and Key Risks
Groww IPO opened for subscription on Tuesday. (Image Groww on X)
ICICI Direct calls Groww’s upcoming IPO “unrated” but points to strong customer retention, scalable tech stack, and profitable execution as core strengths.
By S JHA
Mumbai, November 4, 2025 — The much-awaited Initial Public Offering (IPO) of Groww Limited, one of India’s leading digital investment platforms, opened for subscription today and will close on November 7, 2025.
According to ICICI Direct, the issue remains unrated, but the brokerage highlights Groww’s strong execution, loyal customer base, and cost-efficient technology stack as key positives driving its growth story.
IPO Details
- Issue Size: ₹6,632 crore
- Price Band: ₹95–₹100 per share
- Lot Size: 150 shares
- Minimum Investment: ₹14,250
- Bidding Dates: November 4–7, 2025
- Allotment Date: November 10, 2025
- Refund & Demat Transfer: November 11, 2025
- Listing Date: November 12, 2025
The IPO includes a Fresh Issue of ₹1,060 crore and an Offer for Sale (OFS) of up to 574.19 million equity shares by existing shareholders. The equity shares have a face value of ₹2 each and will be listed on major Indian stock exchanges.
About Groww
Founded as a digital-first wealth management platform, Groww offers users access to mutual funds, equities, derivatives, IPOs, fixed deposits, and U.S. stocks. Its business model centers on expanding its customer base while deepening engagement across multiple financial products.
Groww’s revenues primarily come from commission income and brokerage fees, with the company leveraging a fully in-house technology stack to deliver seamless, low-cost investment experiences.
Objectives of the IPO
The company intends to use the proceeds to:
- Enhance cloud infrastructure and technology capabilities
- Fund brand building and performance marketing initiatives
- Strengthen subsidiaries like Groww Creditserv Technology Pvt. Ltd. (NBFC) and Groww Invest Tech Pvt. Ltd. for capital augmentation and margin trading facilities
- Pursue inorganic growth opportunities and general corporate purposes
Strengths
- High customer retention and engagement metrics
- Proprietary tech platform enabling low-cost scalability
- Diversified revenue streams from multiple financial products
- Sustained growth and profitability backed by execution discipline
Risks
- Market volatility: A downturn in financial markets could affect revenues and valuations
- System reliability: Any disruption to Groww’s digital infrastructure may impact service delivery
- Policy and regulatory changes: Could materially affect operations or profitability
Analyst View
While ICICI Direct has not rated the issue, analysts note that Groww’s strong technology backbone, retention-led growth model, and rapid financial inclusion strategy position it as a potential long-term play in India’s expanding retail investment ecosystem.
(This article doesn’t make any recommendations for either applying or not applying the IPO)
Follow The Raisina Hills on WhatsApp, Instagram, YouTube, Facebook, and LinkedIn
About The Author
