Groww Shares Surge 3% Following Sebi Approval for State Street Global Advisors' AMC Stake Acquisition

Groww Shares Rise 3% as Sebi Approves State Street Global Advisors' Stake Acquisition

On June 2, Groww shares rose 3% following the news that markets regulator Sebi has approved US-based State Street Global Advisors' proposed stake acquisition in Groww Asset Management, a wholly-owned subsidiary of Billionbrains Garage Ventures.

The proposed transaction involves SSGA acquiring shares in Groww AMC, after which it will hold voting rights of 4.85% and an economic interest of 22.94% in the fully diluted share capital of the asset manager. Groww AMC manages mutual fund schemes under the Groww brand and is part of the fintech group operated by Billionbrains Garage Ventures.

The development follows earlier approvals from the company's board and the Competition Commission of India (CCI) for the proposed transaction. Billionbrains Garage Ventures had informed stock exchanges about the board's approval for the transaction on January 14 and the Competition Commission's approval on March 26.

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The proposed stake acquisition is a significant development, as it will see SSGA acquiring a stake in Groww AMC for a total consideration of Rs 580 crore. This transaction is structured in two parts, with Rs 381 crore being routed to Groww through a secondary share sale and Rs 199 crore being infused as primary capital into the AMC.

Groww shares closed 3% higher at Rs 191.29 apiece on June 2, following the news of Sebi's approval. This is a significant increase for the company, which had earlier this year sold a 23% stake in its AMC business to SSGA. Billionbrains Garage Ventures had also acquired a 100% stake in Indiabulls' mutual fund business, now known as Groww Mutual Fund, for Rs 175 crore in 2023.