Groww shares slide as Rs 5,637 crore stake sale kicks off
Groww shares slide as Rs 5,637 crore stake sale kicks off
Block deal by Peak XV, Sequoia and others triggers stock drop as IPO lock-in expires, with a floor price set and large insider selling underway.
Groww's parent Billionbrains Garage Ventures saw its stock drop as much as 7% after it announced a Rs 5,637 crore stake sale by existing investors through the exchange-based block deal route. The move comes as Groww braces for the expiry of its IPO lock-in period.
The floor price for the deal is fixed at Rs 182.3 per share, indicating a discount from prevailing market levels, with investors offloading 30.91 crore shares, or about 5.01% of the company. The sale is expected to be executed in one or more transactions on the screen-based platforms of Indian stock exchanges.
Among the selling shareholders, Peak XV Partners Investments VI-1 remains the largest holder, with over 105 crore shares (16.88%). YC Holdings II owns more than 63.24 crore shares (10.08%), Ribbit Capital V L.P. holds over 43.31 crore shares (6.90%), and Sequoia Capital Global Growth Fund III - U.S./India Annex Fund, L.P. owns more than 9.85 crore shares (1.57%).
Approximately 418.2 crore shares of Groww's parent have become eligible for trading, underscoring the broader market impact as the Bengaluru-based discount brokerage continues its growth trajectory in equities, IPO investments and direct mutual funds. Groww was founded in 2016 and operates under Groww Invest Tech Pvt Ltd.
The stake sale aligns with the IPO lock-in expiry, with a 90-day lock-up period restricting further sales by the selling shareholders in the near term, potentially limiting volatility while new liquidity enters the market.
