Stock broking platform Groww’s parent company Billionbrains Garage Ventures Ltd. has filed an updated draft red herring prospectus with the Securities and Exchange Board of India for its initial public offering.
The company, backed by Microsoft Chief Executive Officer Satya Nadella, is set to offer a fresh issue of shares worth Rs 1,060 crore, as well as an offer-for-sale segment of 57.4 crore shares.
Through the OFS, the firms aims to mop up Rs 5,000-Rs 6,000 crore, taking the overall issue size to around Rs 7,000 crore, sources said.
Groww co-founders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal are to offload 10 lakh shares each via the OFS.
The founders currently hold around 27% equity portion in Groww, with a 20% lock-in for 1.5 years post-listing. Sources say the owners are paring a 0.07% stake in the IPO.
Other investors offloading their stake in the platform include Peak XV, Y Combinator, Ribbit, Tiger Global, and Kauffman Fellows. NDTV Profit had reported back in May that these early backers would likely be paring their stake through the IPO.
The funds raised in the IPO will be used to expand margin trading, unsecured lending, wealth management, and possibly inorganic growth, as per the DRHP.
The bankers handling the offer include JPMorgan Chase, Kotak Mahindra, Citigroup, Axis Capital and Motilal Oswal, whereas the registrar is MUFG Intime India Pvt. Ltd.
The Bengaluru-based firm plans to be listed on both the National Stock Exchange and BSE, with shares having a face value of Rs 2 each. The company had previously filed a confidential DRHP with the markets regulator.
Groww’s parent company saw its top line grow by around 30% in fiscal 2025 while making a profit of Rs 1,819 crore, according to a valuation report reviewed by NDTV Profit.
Billionbrains Garage Ventures reported a profit after tax after a loss in the previous year which came on the back of a one-time tax expense of Rs 1,340 crore. The tax expense was paid for reverse-flipping the company’s domicile to India from the US, which was completed in March 2024.
Groww counts the likes of Zerodha and Angel One Ltd. among its industry rivals. A growing top line has been observed consistently across the broking industry as more retail investors take to the country’s capital markets, with Angel One’s total revenue from operations coming up to Rs 5,238 crore for the fiscal 2025 — a year-on-year increase of 23%.
