Groww Allocates 36% of IPO Proceeds, Holds Rs 645 Crore in Cash Reserves
Billionbrains Garage Ventures (Groww IPO)
IPOGroww Utilizes Only 36 Percent of Fresh Issue Proceeds Since Listing
In the quarter since its debut, Groww, the world's most expensive broking stock, has utilized only 36 percent of its fresh issue proceeds. The capital markets firm has managed to use Rs 371 crore out of the Rs 1,060 crore raised in the fresh issue portion since listing on November 11, 2025. This leaves nearly two-thirds of the funds raised, amounting to Rs 645 crore, unused as of the end of the financial year 2025-26.
The breakdown of the used proceeds is as follows:
| Category | Amount Utilized (Rs crore) |
|---|---|
| Cloud Infrastructure | 41% of Rs 266 crore (Rs 108 crore) |
| Marketing | 46% of Rs 225 crore (Rs 103.5 crore) |
| Investing in Groww Creditserv Technology's capital base | 25% of Rs 266 crore (Rs 66.5 crore) |
| Investing in Groww's MTF business | 51% of Rs 85 crore (Rs 43.35 crore) |
| Inorganic growth and general corporate purposes | Rs 67 crore |
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The largest percentage usage was for investing in Groww's MTF business, with 51 percent of proceeds used at Rs 85 crore. Another significant allocation was for inorganic growth and general corporate purposes, with Rs 67 crore out of Rs 266 crore being utilized.
As per the Securities and Exchange Board of India's current regulations, all mainboard issues with a fresh issue size exceeding Rs 100 crore are required to appoint a monitoring agency to track the utilization of funds. The monitoring agency submits its report to SEBI on a quarterly basis until at least 95 percent of the proceeds of the fresh issue portion, excluding the amount raised for general corporate purposes, have been utilized.
Groww's initial public offering (IPO) raised Rs 6,632 crore, comprising a fresh issue of shares worth Rs 1,060 crore and an offer-for-sale of 56 crore shares, valued at Rs 5,572 crore. Since its debut on the bourses on November 12, shares of the firm have rallied around 44 percent, outpacing the benchmark indices Nifty 50 and Sensex.
In its earnings report for the financial year 2026 and the quarter ended March, released on April 20, Groww posted a consolidated net profit of Rs 686 crore for Q4 FY26, up 122 percent from Rs 309 crore reported in the same quarter last year. The company's total income rose by 81 percent to Rs 1,536 crore in the March quarter from Rs 850 crore it reported during the same period of the previous fiscal year.
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Investor Takeaway
Groww has utilized only 36% of its fresh issue proceeds, with Rs 645 crore remaining unused.
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