“Groww, a leading stockbroking firm, is set to launch its Initial Public Offering (Groww IPO) with a staggering valuation of $6-8 billion. This move is expected to make waves in the financial market, as investors eagerly anticipate the opportunity to invest in this industry giant. Stay tuned for more updates on this exciting development.”
Groww IPO – The stockbroking platform Groww has engaged in discussions with several investment banks regarding a potential initial public offering, according to sources familiar with the matter.
It is anticipated that the IPO will be valued between $6-8 billion, as indicated by these sources. The fintech company is aiming to raise approximately $700 million through the public offering, as reported by insiders.
Groww recently completed the re-domiciliation of its parent entity from the US to India in preparation for its listing in India. This move involved the payment of Rs 1,340 crore ($160 million) in taxes to the US government, based on the newly determined fair market value (FMV). This amount represents a reduction of over 30% from the $3 billion valuation it received during its last funding round in 2021.
Unlike PhonePe, which conducted a share swap deal between its Indian and Singapore units, Groww opted to merge its US parent with its Indian entity, resulting in tax payments to the US. The startup, backed by Peak XV Partners, was last valued at $3 billion in 2021 and has not secured any significant institutional equity funding since then.
The tax payment led to Groww recording a net loss of Rs 805 crore for the fiscal year ending March 31, 2024. However, at an operational level, the fintech company reported a profit of Rs 535 crore, up from Rs 458 crore in FY23.
On a consolidated basis, Groww disclosed revenues of Rs 3,145 crore for the year ended March 31, 2024, representing a 119% increase from Rs 1,435 crore in the previous fiscal year.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.