Groww files updated draft papers with Sebi; eyes Rs 7,000-cr via IPO

New Delhi, Sep 16 (PTI) Billionbrains Garage Ventures, the parent company of stock broking firm Groww, on Tuesday filed updated draft papers with markets regulator Sebi for an initial public offering (IPO) aimed at raising an estimated Rs 7,000 crore, people familiar with the matter said.

The IPO comprises a fresh issue of equity shares worth Rs 1,060 crore along with an offer for sale (OFS) component of 57,41,90,754 equity shares by promoters and investor shareholders, according to the updated draft red herring prospectus (DRHP) filed on Tuesday.

The OFS component is expected in the range of Rs 5,000-6,000 crore.

With this, the company is seeking a valuation of USD 9 billion, the people familiar with the matter said.

As a part of the OFS, the company's promoters -- Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal -- each offering up to 1 million shares, besides, investors such as Peak XV Partners Investments VI-1, YC Holdings II, Ribbit Capital V, GW-E Ribbit Opportunity V, Internet Fund VI Pte. Ltd., and Kauffman Fellows Fund, L.P are offloading shares.

Goww's founders own 27.97 per cent of the company and have filed as promoters of the company with a 20 per cent lock-in for 1.5 years from the time of listing. In the IPO, they are offering to sell only 0.07 per cent of the total shares of the company.

The company, which is backed by marquee investors such as Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, plans to use proceeds of the IPO for investment in technology development and business expansion.

Of the fresh issuance, Rs 225 crore will be used for brand building and performance marketing activities, and Rs 205 crore will be invested in Groww Creditserv Technology Private Limited (GCS), the NBFC arm, to augment its capital base.

Additionally, Rs 167.5 crore will be infused into Groww Invest Tech Private Limited (GIT) to fund its margin trading facility (MTF) business, while Rs 152.5 crore has been earmarked towards strengthening cloud infrastructure. The balance will be utilised for funding inorganic growth through acquisitions and for general corporate purposes.

Headquartered in Bengaluru, Groww filed draft papers in May with markets regulator Sebi for an IPO through a confidential pre-filing route and had received Sebi's approval in August. Following this, companies are required to file an updated DRHP before filing an RHP.

Groww opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the DRHP until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.

To manage the offering, Groww roped in JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets Private Ltd, Axis Capital Ltd, and Motilal Oswal Securities Ltd.

Founded in 2016, Groww emerged as India's largest stockbroker with over 12.6 million active clients and an over 26 per cent market share as of June 2025.

In FY25, the stock broking firm reported a profit of Rs 1,824 crore, while Q1 FY26 profit stood at Rs 378 crore. It maintains an industry-high contribution margin of 85 per cent and a net profit margin of 44 per cent, reflecting a lean direct-to-consumer model.

Over 80 per cent of its new customers are acquired organically, and its three-year retention rate is 77 per cent.

On the mutual funds side, Groww accounted for Rs 34,000 crore of SIP inflows in FY25, or 11.8 per cent, of industry totals, according to AMFI data. In June 2025 alone, one in every three new SIPs in India was initiated on its platform.

The company has recently expanded into wealth management, commodities, a margin trading facility (MTF), and loans against shares, moves it sees as part of its longer-term growth strategy. PTI SP SHW