Groww Launches Block Deal of Approximately $500 Million at Base Size; Three Investors Eye Partial Stake Sale

Groww Stake Sale: Peak XV, Y Combinator, and Ribbit Capital Launch $498 Million Block Deal

Multiple industry sources familiar with the matter have revealed that three investors, Peak XV, Y Combinator, and Ribbit Capital, have launched a block deal to sell part of their stake in wealth-tech firm Groww (Billionbrains Garage Ventures Ltd). The proposed transaction has a base size of $498 million and may be upsized later depending on demand.

The block deal has been set with a floor price of Rs 177 per share. In comparison to the current market price, Groww shares ended trade on May 11 at Rs 193.70 apiece. The three investors, who are collectively advising on the transaction with Kotak Mahindra Capital and JP Morgan, are looking to dilute around 4.3 percent stake in the company.

According to the latest shareholding data available on the exchanges, Peak XV holds a 16.88 percent stake in Groww, while two entities linked to Y Combinator hold 11.25 percent. Two entities associated with Ribbit Capital collectively own 12.36 percent.

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Earlier on Monday, Moneycontrol reported that Groww will see the expiry of the lock-in period for around 400 crore shares on May 12, accounting for nearly 65 percent of pre-IPO shareholder holdings, according to brokerage report data. The report added that block deals worth around Rs 5,000 crore are expected to begin from May 12. Under Sebi regulations, non-promoter pre-IPO shareholders are subject to a mandatory six-month lock-in period following a company’s stock market listing.