Groww uses 36% of IPO proceeds so far, sits on Rs 645 crore cash

After debuting a little over one quarter ago, Groww, the world's most expensive broking stock, has utilized only 36 percent of its fresh issue proceeds.

Of the Rs 1,060 crore raised in the fresh issue portion, the capital markets firm has utilised Rs 371 crore since listing on November 11, 2025. Therefore, nearly two-thirds of the funds raised - amounting to Rs 645 crore - are unused as of the end of the financial year 2025-26. Of the total fresh issue component, around Rs 44 crore was for IPO proceeds.

Around 41 percent of the portion allocated to cloud infrastructure has been used, while 46 percent of Rs 225 crore earmarked for marketing has been utilized. The discount brokerage has only used 25 percent of the proceeds raised for investing in bolstering Groww Creditserv Technology's capital base.

The largest percentage usage, 51 percent of proceeds used at Rs 85 crore, was for investing in Groww's MTF business, while Rs 67 crore of Rs 266 crore was used for inorganic growth and general corporate purposes.

According to the Securities and Exchange Board of India's current regulations, all mainboard issues that have a fresh issue size exceeding Rs 100 crore are liable to appoint a monitoring agency to track the utilisation 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.

The initial public offering of Billionbrains Garage Ventures, the parent company of the popular broking platform Groww, raised Rs 6,632 crore. The issue comprised 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.

Groww released its earnings report for the financial year 2026 and the quarter ended March on April 20. The company 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 previous fiscal year.