Groww IPO gets fully subscribed on Day 2

The initial public offering of Billionbrains Garage Ventures, the parent company of stock broking firm Groww, got fully subscribed on the second day of share sale on Thursday.

The company's IPO received bids for 39,16,33,950 shares, as against 36,47,76,528 shares on offer, translating into 1.07 times subscription, as per data available with the NSE till 11:45 hours.

Retail Individual Investors (RIIs) part received 3.62 times subscription, while the quota for non-institutional investors got subscribed 1.32 times. The category for Qualified Institutional Buyers (QIBs) fetched 10 per cent subscription.

Billionbrains Garage Ventures on Monday garnered a little over Rs 2,984 crore from anchor investors. The company's Rs 6,632 crore IPO would conclude on Friday. The firm has fixed a price band of Rs 95-100 per share for its IPO, targeting a valuation of over Rs 61,700 crore (about USD 7 billion).

The IPO has a fresh issue of equity shares worth Rs 1,060 crore along with an Offer-for-Sale (OFS) component of 55.72 crore equity shares. The company, which is backed by marquee investors such as Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, plans to use proceeds from the IPO to invest in technology development and business expansion.

Of the fresh issuance, Rs 225 crore will be used for brand building and performance marketing activities, and Rs 205 crore will be invested in Groww Creditserv Technology Pvt Ltd (GCS), the NBFC arm, to augment its capital base.

Additionally, Rs 167.5 crore will be infused into Groww Invest Tech Pvt Ltd (GIT) to fund its margin trading facility business, while Rs 152.5 crore has been earmarked to strengthen cloud infrastructure. The balance will be utilised for funding inorganic growth through acquisitions and for general corporate purposes.