Online brokerage firm Groww has made a significant update to its initial public offering (IPO) plans, according to its latest draft red herring prospectus (DRHP) filing. The company has revised its IPO size downward to ₹7,000 crore from the initially planned ₹8,300 crore, while aiming for a valuation of $9 billion.

IPO Structure

The revised IPO structure comprises two main components:

1. Fresh Issue: ₹1,060 crore
2. Offer for Sale: ₹5,000-6,000 crore

The offer for sale portion will allow promoters and early investors to divest part of their holdings in the company.

Founder Stake

Groww, founded in 2017 by former Flipkart employees, is led by four co-founders:

• Lalit Keshre
• Harsh Jain
• Neeraj Singh
• Ishan Bansal

Collectively, the founders hold approximately 28% stake in the company. Notably, they plan to sell only a minimal portion of their holdings, amounting to 0.07%, through this IPO.

Company Background

Groww has quickly established itself as a prominent player in the online brokerage space since its inception in 2017. The platform offers a range of investment products and has gained popularity among retail investors for its user-friendly interface and accessibility.

The company's decision to go public marks a significant milestone in its growth journey, reflecting the increasing interest in fintech and digital investment platforms in India.

As Groww prepares for this public offering, investors and market observers will be closely watching how the market responds to this high-profile IPO in the fintech sector.

Groww, the popular mutual fund investment platform, is set to make waves in the Indian fintech sector as it prepares to refile its Initial Public Offering (IPO) papers this week. The Bengaluru-based company is targeting an impressive valuation of approximately ₹80,000 crore, with plans for a potential listing in November.

Strong Financial Performance

The company's financial results have been remarkable:

These figures underscore Groww's robust financial health and its ability to generate substantial profits in the competitive fintech landscape.

Market Leadership

Groww has solidified its position as India's largest stockbroker, boasting an impressive user base of 15 million active users. This achievement highlights the platform's growing popularity and its ability to attract and retain customers in the competitive investment market.

IPO Details

The Securities and Exchange Board of India (SEBI) has given the green light to Groww's IPO proposal. The offering will comprise both fresh equity issuance and an offer for sale, providing an opportunity for existing investors to partially exit their holdings.

Backing from Notable Investors

Groww's journey to this point has been supported by a roster of high-profile investors, including:

• Peak XV
• Tiger Global
• Microsoft CEO Satya Nadella

IPO Proceeds Utilization

The funds raised from the IPO are earmarked for two primary purposes:

1. Technology development
2. Business expansion

These investments are likely aimed at further solidifying Groww's market position and enhancing its service offerings.

Lead Managers

To navigate the complexities of the IPO process, Groww has appointed a team of experienced financial institutions as lead managers:

• JP Morgan India
• Kotak Mahindra Capital
• Citigroup Global Markets
• Axis Capital
• Motilal Oswal Securities

The involvement of these reputable firms underscores the significance of Groww's IPO in the Indian financial markets.

As Groww prepares to take this significant step towards becoming a publicly-traded company, investors and industry observers will be keenly watching how the market responds to this high-profile fintech listing.