Groww's Founders and Early Backers to Reap Significant Gains from Upcoming IPO

Strategic Insights -

BillionBrains Garage Ventures, the parent of Bengaluru-based investment platform Groww, is set to make significant paper gains as the company prepares for its initial public offering (IPO). According to Groww's red herring prospectus (RHP), the company's four cofounders, Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, together hold a 26.6% stake in the company, valued at over Rs 16,000 crore. As the company's chief executive, Keshre owns 9.12% of the company, with his holding valued at around Rs 5,591 crore. Jain, the chief operating officer, owns 6.72% of the company, with his holding valued at around Rs 4,116 crore.

Key Takeaways:

  • The total size of the IPO is Rs 6,632.3 crore, with the price band fixed at Rs 95-100 per share.
  • The founders, Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, have opted out of the offer for sale (OFS), bringing down the overall OFS size to 557.2 million shares.
  • Institutional investors, including Peak XV Partners, Y Combinator, and Tiger Global, will see significant gains from the OFS, with Peak XV Partners looking at 52X paper returns.
  • The upcoming IPO is set to unlock employee wealth worth around Rs 2,400-2,500 crore.
  • Groww has grown significantly since its inception in 2016, becoming India's largest online stockbroking platform by number of active NSE clients.

Statistics:

  • Groww's 26.6% stake is valued at over Rs 16,000 crore.
  • Keshre's 9.12% holding is valued at around Rs 5,591 crore.
  • Jain's 6.72% holding is valued at around Rs 4,116 crore.
  • Singh and Bansal will hold stakes valued at Rs 3,832 crore and Rs 2,777 crore, respectively.
  • Peak XV Partners will unlock around Rs 1,583 crore via the OFS.
  • The total size of the IPO is Rs 6,632.3 crore.
  • Groww reported Rs 904.3 crore in operating revenue for the June quarter, compared with Rs 1,000.7 crore a year earlier.

Sources:

  • ET: [Excluding], "Groww’s founders, early backers to reap gains from upcoming IPO" (no date mentioned)
  • Groww's red herring prospectus (RHP) (no date mentioned)