Groww Has Used Only 36% of Its IPO Funds So Far; Profits Soar

Just over a quarter after its stock market debut, Groww has deployed only 36% of the fresh capital it raised through its initial public offering (IPO), leaving nearly two-thirds of the funds sitting idle as the discount brokerage continues to post sharply rising profits, reported Moneycontrol.

Of the ₹1,060 crore raised in the fresh issue component of its November 2025 listing, Billionbrains Garage Ventures — the parent company behind the Groww platform — had utilised ₹371 crore as of the end of FY26, with ₹645 crore still undeployed. Around ₹44 crore of the total fresh issue was earmarked for IPO-related expenses.

The spending pattern across specific buckets is uneven. Cloud infrastructure has seen 41% of its allocated funds deployed, whilst marketing has consumed 46% of the ₹225 crore set aside for it, report said.

The lowest utilisation rate is in the capital infusion earmarked for Groww Creditserv Technology, where only 25% of proceeds have been used. The highest, at 51%, is in the margin trading finance business, where ₹85 crore has been deployed. Just ₹67 crore of the ₹266 crore allocated for inorganic growth and general corporate purposes has been spent.

Under SEBI's current regulations, all mainboard issues with a fresh issue size exceeding ₹100 crore are required to appoint a monitoring agency to track fund utilisation. That agency submits quarterly reports to the regulator until at least 95% of the proceeds — excluding general corporate purpose allocations — have been deployed.

Strong Earnings Take the Edge Off

The slow pace of capital deployment has done little to dent investor enthusiasm, in part because the underlying business is performing strongly. Groww reported a consolidated net profit of ₹686 crore for the fourth quarter of FY26, up 122% year on year from ₹309 crore in the same period last year. Total income rose 81% to ₹1,536 crore in the March quarter, against ₹850 crore a year earlier.

A Stock That Has Already Rewarded Early Investor

The company's IPO — which raised ₹6,632 crore in total, comprising the ₹1,060 crore fresh issue and an offer-for-sale of 56 crore shares valued at ₹5,572 crore — priced Groww as the most expensive broking stock in the world at the time of listing. Since its debut on 12th November 2025, the shares have rallied approximately 44 per cent, comfortably outpacing both the Nifty 50 and the Sensex over the same period.

The combination of undeployed capital, a clean balance sheet and accelerating profitability suggests the company is in no particular hurry to spend — and, for now at least, the market appears to agree that patience is the right posture.