Wealthtech unicorn Groww has taken its first big step toward launching an Initial Public Offering (IPO) by confidentially filing draft papers with SEBI under the regulator’s pre-filing mechanism. This move allows Groww to get feedback from SEBI without making its IPO details public at this stage.
Groww’s parent company, Billionbrains Garage Ventures Ltd, submitted the draft red herring prospectus (DRHP) under Chapter IA of SEBI’s ICDR Regulations. This gives the company flexibility in disclosing sensitive financial and business data while waiting for SEBI’s review. Once approved, an updated DRHP with full details will be made public.
Sources suggest that Groww is targeting a post-money IPO valuation of $7–8 billion. Based on this, the IPO size could range between $700–920 million, assuming a typical 10–15 percent equity dilution. This would make Groww’s IPO one of the most closely watched fintech listings in India this year.
The company is planning to list on both NSE and BSE mainboards. However, the exact issue size, number of shares, and breakdown between fresh issue and offer-for-sale are still not disclosed. The IPO will include equity shares with a face value of Rs 2 each.
Groww, rival to industry leaders Zerodha and Upstox, has been increasingly expanding as a company in the mutual fund-distribution and online discount broking space. Groww, funded by investors including Tiger Global, Peak XV Partners, and Ribbit Capital, was valued at $3 billion in the 2021 series round.
The firm has recorded robust growth in FY24 with revenues doubling to Rs 3,145 crore. Operating profit for the year increased 17 percent at Rs 535 crore. However, a one-time domicile tax charge of Rs 1,340 crore led to a net loss of Rs 805 crore for Groww. Worth mentioning, the firm has relocated its registered office from Delaware, USA to Bengaluru in the last financial year.
Groww’s floatation occurs at a time the broking sector has been experiencing a downturn. Regulations impacted revenue, while investor confidence has taken a knock. Groww shed close to 75,000 active investors in April 2025 only. Other leading brokers such as Zerodha and Angel One too faced substantial declines in active users and earnings in the last few months.
Even while the broking industry grapples with stricter regulations and increased taxes, Groww’s decision to go public reflects faith in its growth potential over the longer haul and the strength of its investor appeal even during a volatile market.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
