Groww IPO: Promoters Set to Reap Rs 40 Crore Windfall
Groww’s four co-founders are on the brink of extraordinary gains, with potential returns reaching up to 4,950% as the fintech prepares for its highly anticipated IPO. This Bengaluru-based online brokerage is gearing up for one of India’s most awaited public listings this year. Here’s what you need to know:
– Massive Returns for Early Investors: The top five early backers are expected to collectively cash out around Rs 4,340 crore, with returns soaring to levels of 5,135%.
– IPO Details: The public offering opens on November 4 and closes on November 7, with shares priced between Rs 95–100. This sets the valuation of Groww’s parent company, Billionbrains Garage Ventures, at approximately $8 billion (around Rs 70,400 crore).
– Fresh Issue and OFS Components: The IPO consists of a fresh issue of Rs 1,060 crore along with an Offer for Sale (OFS) of 55.72 crore shares from early investors.
Noteworthy Investor Windfalls
– Peak XV Partners: Set to offload 15.83 crore shares purchased at an average cost of Rs 1.91, potentially earning Rs 1,582.81 crore at the upper price bracket.
– Y Combinator: Selling 10.54 crore shares bought for Rs 3.45, could see its investment rise to Rs 1,054.81 crore.
– Ribbit Capital: Anticipated gains from selling 6.56 crore shares initially acquired at Rs 2.30, leading to an investment value of Rs 656.68 crore.
Market Sentiment and Company Performance
The IPO opens following a successful October for listings, with significant offerings from Tata Capital and LG Electronics. Founded in 2016, Groww has transitioned from a stockbroking platform to a comprehensive financial services marketplace, offering wealth management and loans against shares.
Recent performance metrics include:
– Net Profit: Rs 1,824 crore in FY25, a remarkable turnaround from Rs 805 crore in losses the previous year.
– Active Clients: 12.6 million on the National Stock Exchange (NSE), representing 26.3% of the retail investor market.
As it stands, Groww not only demonstrates strong financials but has also solidified its reputation in the fintech sector. If all goes well with the IPO, it could mark a significant chapter in the story of India’s financial innovation, placing it alongside notable successes like Paytm and Zomato.