The Bengaluru-based fintech unicorn Groww, owned by Billionbrains Garage Ventures, is set to make its Dalal Street debut in a few days. The company has announced that its IPO will open for subscription on November 4 and close on November 7. Moreover, it has set a price band fixed between Rs 95-100 per share (face value Rs 2 each).
Now, as it gears up for stock market entry, let’s take a look at some of the key factors every investor needs to know ahead of its opening on November 4.
Groww IPO: Founders’ stake now worth thousands of crores
Founded by four former Flipkart executives – Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, the company has grown into one of India’s most popular online investment platforms. The four co-founders collectively hold 163.16 crore shares, representing 26.64% of Groww’s equity on a fully diluted basis, as per the DRHP filing.
Based on the upper price band of Rs 100, their combined holding is now valued at a whopping Rs 16,315.6 crore. Let’s take a look at what each founder’s stake is worth at the top end of the price band –
Lalit Keshre (CEO): 55.90 crore shares – translates to Rs 5,590.6 crore
Harsh Jain (COO): 41.15 crore shares – translates to Rs 4,115.8 crore
Neeraj Singh (CTO): 38.32 crore shares – translates to Rs 3,831.9 crore
Ishan Bansal (CFO): 27.77 crore shares – translates to Rs 2,777.1 crore
While each founder is offering 10 lakh shares in the OFS, a small portion of their total stake, their paper wealth marks a huge turnaround for a startup that began less than a decade ago as a mutual fund investing app.
Groww IPO: Early investors line up for windfall exits
Apart from the founders, Groww’s early institutional investors are also sitting on massive gains.
A bunch of top global venture capital funds and institutional investors are participating in the Offer for Sale (OFS). They are collectively offloading over 55 crore shares.
Massive paper wealth for pre-IPO holders
Even after the partial sell-off, these early investors continue to hold sizeable stakes in Groww. At the top price band of Rs 100 per share, Peak XV’s remaining pre-offer holding of 121.75 crore shares is worth about Rs 12,175 crore, while Y Combinator’s 73.79 crore shares are valued around Rs 7,379 crore. Similarly, Ribbit Capital’s 49.88 crore shares amount to Rs 4,988 crore, and Internet Fund VI’s 37.03 crore shares are valued at Rs 3,703 crore.
Groww IPO: Size and structure
The Groww IPO consists of a fresh issue worth Rs 1,060 crore and an offer for sale (OFS) of 55.72 crore shares by existing investors. These include names like Peak XV Partners (formerly Sequoia Capital India), Ribbit Capital, Tiger Global, Y Combinator, and Kauffman Fellows Fund.
The lot size has been set at 150 shares, and investors can bid for multiples thereafter.
At least 75% of the offer is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.
The anchor book opens on November 3, while the listing is expected on November 12 on both BSE and NSE.
Groww IPO: Lead managers of the issue
Kotak Mahindra Capital Company is managing the IPO as the lead book-running manager, while MUFG Intime India has been appointed as the registrar for the issue.
