Groww IPO Opens November 4: Price Band Set at INR 95-100, Valuation Nears INR 61,735 Crore

Groww, a prominent investment technology firm, is gearing up for its Initial Public Offering (IPO), which is set to open on November 4 and conclude on November 7. Prior to the public offering, anchor investor bidding will commence on November 3. The IPO structure includes a fresh issuance of shares worth up to INR 1,060 crore, aimed at raising capital for the company. Additionally, an Offer for Sale (OFS) component will allow existing shareholders to sell up to 55.72 crore shares. Groww has slightly adjusted the OFS size downwards from previous proposals.

The company has determined a price band of INR 95 to INR 100 per share for its listing. At the higher end of this band (INR 100), Groww would achieve a valuation of around INR 61,735 crore, which is approximately $7 billion. The total potential size of the IPO, based on the INR 100 upper price, is estimated to exceed INR 6,600 crore, or about $746.4 million.

Impact: This IPO is significant as it represents a major tech player entering the public markets, potentially drawing substantial investor interest and influencing sentiment towards the Indian fintech sector. Its performance post-listing could set a benchmark for future tech IPOs. Rating: 8/10.

Difficult terms: * IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company. * RHP (Red Herring Prospectus): A preliminary document filed with the securities regulator that contains details about the company and its proposed securities offering, which can be amended before the final prospectus is filed. * Anchor Investor Bidding: A process where certain institutional investors are allowed to subscribe to a portion of the IPO shares before the public offering opens, to build confidence among retail investors. * Fresh Issue: When a company issues new shares to raise capital from the public. * Offer for Sale (OFS): When existing shareholders sell their shares to the public during an IPO, and the proceeds go to the selling shareholders, not the company. * Price Band: The range within which the shares of a company will be offered during an IPO. * Valuation: The estimated financial worth of a company. * Price to Earnings Ratio (P/E ratio): A valuation metric that compares a company's current share price to its earnings per share (EPS). It indicates how much investors are willing to pay for each rupee of earnings. * Diluted Earnings Per Share (EPS): A measure of profitability that takes into account all potential dilutive securities, such as stock options and convertible bonds, showing earnings on a per-share basis if all these were exercised.