May 26, 2024
New Delhi, India
Groww IPO
Billionbrains Garage Ventures, the parent firm of online stock broking platform Groww, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its much-anticipated initial public offering (IPO). The DRHP, submitted on May 24, takes the confidential pre-filing route, a method increasingly favored by Indian firms for its flexibility and privacy.
According to sources cited by PTI, Groww is aiming to raise between $700 million and $1 billion through a mix of fresh equity issuance and an offer-for-sale (OFS) component. The proceeds are expected to be channelled into technology innovation and business expansion.
About Groww
Founded in 2016 by former Flipkart executives Harsh Jain, Lalit Keshre, Neeraj Singh, and Ishan Bansal, Groww has quickly emerged as India’s fastest-growing retail investing platform, attracting backing from marquee investors such as Peak XV, Tiger Global, and Microsoft CEO Satya Nadella.
The Bengaluru-based fintech firm witnessed a 119% surge in revenue, clocking ₹3,145 crore in FY24 compared to ₹1,435 crore in FY23. It reported an operating profit of ₹535 crore — a 17% rise from the previous fiscal year. However, Groww posted a net loss of ₹805 crore, primarily due to a one-time tax expense of ₹1,340 crore incurred while redomiciling from the U.S. to India.
GIC Eyes Stake, Top Banks Onboard
Earlier this month, Singapore’s sovereign wealth fund GIC applied to the Competition Commission of India (CCI) to acquire a 2.14% stake in Billionbrains Garage Ventures, according to a PTI report dated May 15.
To manage its IPO, Groww has enlisted a robust lineup of merchant banks, including JP Morgan India, Kotak Mahindra Capital, Citigroup Global Markets, Axis Capital, and Motilal Oswal Securities. The company plans to list its shares on both the NSE and BSE mainboard.
Pre-Filing Route Gains Momentum
Groww joins a growing list of Indian firms opting for the confidential pre-filing mechanism, which provides an extended 18-month window to launch the IPO post-SEBI approval, compared to 12 months in the traditional route. Additionally, issuers can revise the primary issue size by up to 50% until the updated DRHP stage.
Notably, companies like Tata Capital, Shiprocket, PhysicsWallah, and Imagine Marketing have adopted the same route. Tata Play was the first Indian company to use this option in December 2022, although it later withdrew its public issue plans.
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