Online stockbroking platform Groww’s parent company, Billionbrains Garage Ventures, has quietly kicked off its IPO process by filing draft papers confidentially with the Securities and Exchange Board of India (SEBI). This move has caught the attention of investors, with expectations that Groww could raise between $700 million and $1 billion.
Let’s take a look into the six most important things you need to know about this development-
Groww’s IPO: Confidential Filing – Why Groww chose the quiet route
Groww’s IPO draft red herring prospectus (DRHP) was filed via a confidential pre-filing route on May 24, according to a PTI report citing sources.
This option lets companies delay publicly revealing full IPO details, giving them extra flexibility to fine tune plans before going public.
Unlike the traditional IPO route that demands launch within 12 months of SEBI approval, the confidential filing extends this window to 18 months. Companies can also adjust their IPO size by up to 50% during the process.
Groww’s IPO: Size and structure of the offering
As per PTI’s report, Groww’s IPO could raise anywhere from $700 million to $1 billion through a mix of fresh equity and an offer for sale (OFS). This dual strategy allows Groww to raise fresh capital to fuel growth while providing an exit opportunity to existing investors.
Groww’s IPO: Financial footing
Looking at the financial performance, for the fiscal year 2023-24 (FY24), the company’s revenue surged 119% year-on-year to Rs 3,145 crore, while operating profit grew 17% to Rs 535 crore, as per the PTI report.
A one-time tax expense of Rs 1,340 crore related to Groww’s decision to shift its domicile from the US to India resulted in a net loss of Rs 805 crore for FY24.
Groww’s IPO: Backing by big-name investors
Groww’s backers include marquee names such as Peak XV, Tiger Global Capital, and even Microsoft CEO Satya Nadella. Earlier in May, Singapore’s sovereign wealth fund GIC sought approval to buy a 2.14% stake in Billionbrains Garage Ventures.
Groww’s IPO: Key players managing the IPO
Groww has roped in some of India’s top investment banks and brokers, including JP Morgan India, Kotak Mahindra Capital, Citigroup Global Markets, Axis Capital, and Motilal Oswal Securities.
The shares are expected to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
About the company
Founded in 2016 by former Flipkart executives, Groww has gradually become a market leader in India’s retail broking space. By March 2025, Groww captured over 26% market share on the National Stock Exchange, up from 23.28% a year ago.