Billionbrains Garage Ventures Limited, the parent company of Groww, is said to have priced its initial public offering (IPO) at Rs 95 - 100 per share according to sources. This works to approximately Rs 7,000 crore that Groww is eyeing at raising through it’s public issue. It translates to a valuation of Rs 68,000 crore or about USD 8 billion, piping that of Angel One, Groww’s immediate comparable peer in the listed space.
However, at this level of pricing, Groww’s IPO may rank at a discount to grey market pricing at Rs 128 on October 29. Bankers aware of the Groww’s pricing say it was a deliberate decision taken to ensure that there is money left on the table for new investors, especially the retail segment. “The discounted price band will help Groww’s customers become its shareholders and be a part of the company’s growth journey,” said a banker who did not want to be named while explaining the pricing rationale.
Groww is the market leader in stock broking and mutual funds distribution with over 14 million active retail investors. It is also said to be among the fastest-growing digital investment platforms in India. The IPO is a mix of offer for sale and fresh issue, which will help the company raise capital amounting to Rs 1,060 crore. Founded in 2016, by four former employees of Flipkart - Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, the IPO is see part monetisation of stake by investors such as Peak XV Partners, Ribbit Capital, Y Combinator and Tiger Global.
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