SEBI Clears Groww IPO Approval: What Investors Should Know

SEBI has approved Groww’s IPO. That means the Bengaluru-based fintech can move forward with one of the largest stock market listings from an Indian startup this year. The offer size is expected to be around $700 million to $1 billion, and the company’s valuation could fall between $7 and $9 billion. This isn’t a small move—it puts Groww in the same league as some of India’s biggest tech listings.

Quick facts about Groww’s business

Groww started in 2016 with a simple idea: make mutual fund investing easy. It was founded by ex-Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal. Within a few years, they had expanded into stock trading, ETFs, F&O, IPOs, and even digital gold.

• Active clients (Aug 2025): 12.3 million

• NSE market share: ~26%

• FY25 revenue: ₹4,056 crore

• FY25 profit: ₹1,818 crore (up 3x from the previous year)

The scale is large enough that Groww is now India’s biggest stock broker, ahead of Zerodha in active users.

Check the Live Report of Groww Share Price

How the IPO is structured

The IPO will be a mix of fresh issue + offer for sale (OFS). That means new shares will be created, and existing investors will also sell some of their stake. The dilution is expected to be 10–15% of equity.

The money raised isn’t just for optics. Most of it is likely to be used for:

1. Tech improvements (trading platform reliability, backend infra).

2. Expansion of services (possibly insurance or lending).

3. International moves (management hasn’t confirmed, but this is on the table).

Timeline so far

• May 26, 2025 – Groww filed a confidential DRHP under SEBI’s pre-filing system.

• August 28, 2025 – SEBI cleared the IPO plan.

• Next steps – Groww will file a public DRHP, then start roadshows with institutional investors.

Advisors and lead managers include JPMorgan, Citi, Kotak Mahindra, Axis Capital, and Motilal Oswal.

Market context

Retail trading activity has slowed this year. In fact, discount brokers together lost over 1.1 million active investors in H1 2025 because of volatility and tighter F&O rules. Even then, Groww has managed to hold onto growth because of strong SIP flows and a broader product mix. Profitability is a big differentiator here—unlike Paytm’s listing, this is a profitable fintech going public.

Why this IPO matters

• It shows that Indian fintech can scale profitably.

• It could set the tone for other startups waiting to go public.

• Retail investors will likely look at this as a safer bet compared to earlier fintech listings.

Final take

Groww is coming into the IPO market at a time when investors are cautious, but its numbers look strong. With consistent profitability, millions of active clients, and regulatory clearance, the company is in a far better position than some of the previous Indian tech listings. If the offer is priced reasonably, demand from both institutional and retail investors should be strong.

FAQ on Groww IPO

1. When is Groww’s IPO expected?
The exact dates are not announced yet. SEBI approved the IPO on August 28, 2025. The company will file a public DRHP next, and the IPO could open in the next 2–3 months, depending on market conditions.

2. How big is the IPO?
The offer size is expected to be between $700 million and $1 billion.

3. What is Groww’s valuation?
Market estimates place the company’s valuation in the range of $7–9 billion for the IPO.

4. What type of issue will it be?
It will be a combination of a fresh issue of shares and an offer for sale (OFS) by existing investors. This will dilute roughly 10–15% equity.

5. How will the funds be used?
Proceeds will likely be used for technology upgrades, expanding financial products, and possibly for international expansion.

6. Who are the lead managers for the IPO?
The banks running the IPO include JPMorgan, Citi, Kotak Mahindra, Axis Capital, and Motilal Oswal.

7. What are Groww’s financials?

• FY25 revenue: ₹4,056 crore

• FY25 net profit: ₹1,818 crore (3x growth YoY)

• Active users: 12.3 million (as of Aug 2025)

8. What risks should investors know?

• Retail trading volumes in India have slowed in 2025.

• Regulatory changes in F&O trading can impact broker revenues.

• Heavy competition from Zerodha, Angel One, and Upstox.

9. Will there be a Grey Market Premium (GMP)?
Not yet. GMP data only comes out once IPO dates and price bands are announced.

10. How does Groww compare to other fintech IPOs?
Unlike Paytm and Zomato, Groww is profitable, which could make it more attractive to investors.