Stock broking platform Groww has filed revised draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its Rs 7,000 crore initial public offering (IPO).

 

The public issue comprises a fresh share issuance worth Rs 1,020 crore and an offer for sale (OFS) of around Rs 5,000-Rs 6000 crore by existing shareholders.

The OFS will see major investors and co-founders divesting their stakes, with Peak XV planning to sell 15.8 crore shares, YC Holding offloading 10.5 crore shares, and Ribbit Capital selling 11.8 crore shares. Tiger Global, Kauffman Fund, and co-founders Lalit Keshre, Harsh Jain, and Neeraj Singh will also divest their stakes.

The Bengaluru-based fintech intends to use the fresh capital to enhance cloud infrastructure, strengthen brand presence, make investments in subsidiaries, pursue strategic acquisitions, and meet general corporate requirements. 

The IPO will be managed by Kotak, JP Morgan, Citi, Axis Capital, and Motilal Oswal.

In May, Groww had filed for its IPO via the confidential route. The pre-filing mechanism, introduced by SEBI in 2022, allows companies to privately submit their DRHPs. The DRHP remains confidential until the firm decides to go public.

Groww was founded by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal in 2016. The platform provides retail investors with access to mutual funds, stocks, ETFs, and other investment products, positioning itself as a simplified investment platform for Indian millennials and first-time investors.

The company recorded revenue growth of 50% to Rs 3,902 crore in FY25 compared to Rs 2,609 crore in the previous financial yar. Groww swung to profit with earnings of Rs 1,824 crore against a loss of Rs 805 crore in the previous fiscal year.

Groww's IPO joins a growing pipeline of fintech public offerings this year.

Earlier this week, Pine Labs received approval from SEBI for its IPO. Walmart's PhonePe is preparing to file for its IPO via the confidential route.