Groww to File Confidential IPO with Sebi, Raises $150 Million from GIC:

Groww to File Confidential IPO with Sebi, Raises $150 Million from GIC: Tezzbuzz | 16/05/2025 16:24:18

Suspense crime, Digital Desk : Stock trading platform Groww is expected to submit a confidential draft red herring prospectus (DRHP) to SEBI within the next two weeks, as per sources information shared with Bussiness. The IPO regulatory approval will likely take 2-3 months, after which the company will file an updated DRHP reflecting quarterly updates financially.

IPO Ante Funding Round

For its public listing the company intends to raise $150 million from GIC in Singapore which will push its post-money valuation to $7 billion. This is part of the larger pre-IPO funding round of $250-300 million that is expected to close within the next two weeks.

Achievable IPO Valuation Target & Growth

The company may set a public market valuation target of $7-8 billion as speculated by sources. Known for their high growth, the company might take this market volatility as a chance for a more conservative approach. Groww still sits as India’s leading stock broking firm by active investor count.

Investment Performance Focus

In FY24, Groww reported an increase in revenue rising to ₹3,145 crore which is twice as much their previously reported revenue. Operational profit also saw a raise of 17% sitting at ₹535 crore up from ₹458 crore the previous year. Even so, a one-time domicile tax of ₹1,340 crore resulted in a net loss of ₹805 crore. The company is reported to have changed its registered office from Delaware to Bengaluru in FY24.

Industry Faces Regulatory Headwinds

For the brokerage part, the IPO is coming at a tough phase. Trading activity has had a shift due to regulatory changes, resulting in a decrease of market participants. In April, Groww lost around 75,000 active users, whereas Zerodha lost over 55,000, marking its fifth consecutive monthly decline.

Market Impact on Peers

Publicly listed Angel One recorded a 49 % in net profit decline YoY for Q4FY25 reporting it at ₹175 crore and a 22% decline in consolidated revenue to ₹1,056 crore. Broking firms predict a topline decline of up to 50% in the second half of FY25 due to more stringent policies on options and futures trading.

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