Synopsis
Groww's early investors have sold shares after their IPO lock-in period ended. This move has generated massive returns for firms like Peak XV, Ribbit Capital, and Y Combinator. The block deal involved millions of shares. Groww's stock has seen significant growth since its listing.Silicon Valley investor Sequoia Capital, Peak XV (formerly Sequoia Capital India), Micky Malka’s Ribbit Capital, and YCombinator offloaded 30.91 crore shares or 5.01% equity in the company through a block deal on Tuesday. The floor price for the block deal was set at Rs 182.3 apiece. The full deal, where other investors may also participate, is valued at Rs 5,367 crore or about $560 million.
Early Tuesday, Groww’s stock was down over 4.3% at Rs 185.28 per share.
The sale proceeds will add to the bumper returns these investment firms made last year, when they offloaded part of their stakes in the fintech.
Last November, Groww listed on India’s stock exchanges following what was the second-biggest fintech IPO in the country, at a share price of Rs 100. Since its listing, Groww’s stock has surged over 40%.
During the IPO, Peak XV Partners, one of India’s biggest venture capital firms, sold shares worth Rs 1,582 crore, while YCombinator offloaded a stake worth Rs 8,187 crore. Ribbit Capital also sold shares worth Rs 5,618 crore in the IPO.
At Groww’s current share price, Peak XV’s 16.88% stake in the company, before today’s block deal, was valued at around Rs 19,580 crore, while Ribbit Capital’s stake was worth around Rs 8,000 crore. YCombinator’s stake was valued at Rs 11,762 crore before the deal.
The share sale will be conducted through one or more transactions on the screen-based trading platforms of Indian stock exchanges, ET reported earlier in the day. Such transactions are typically executed as block deals or large institutional trades through the exchange mechanism.
Under the deal structure, the selling shareholders will be subject to a 90-day lock-up after the transaction, preventing them from selling additional shares during this period.
Following the expiry of the IPO lock-in period, nearly 418.2 crore shares of Groww parent Billionbrains Garage Ventures, valued at about $9.4 billion, became eligible for sale.
