Groww gets CCI approval to issue bonus shares to Peak XV, Tiger Global, others
02 Apr 2025, 01:56 PMThe proposed transaction also includes the elimination of differential voting rights held by Groww’s founders.
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Stock broking firm Groww has secured approval from the Competition Commission of India (CCI) to issue bonus shares to its existing investors ahead of its Initial Public Offering (IPO).
According to the Press Information Bureau release, "The Competition Commission of India has approved the acquisition of additional voting rights by certain shareholders of Billionbrains Garage Ventures Private Limited (Groww) and issuance of bonus compulsorily convertible preference shares to all existing equity shareholders of Groww."
The proposed transaction includes, the elimination of differential voting rights held by Groww’s founders and the bonus compulsorily convertible preference shares to be issued to all existing equity shareholders, including Peak XV, Ribbit Capital, Y-Combinator, ICONIQ Strategic Partners, Tiger Global, and the founders of Groww.
Groww allows investors to invest in stocks, mutual funds and other financial instruments. Groww, through its affiliates, also has its own asset management business.
Groww recently appointed investment bankers --JPMorgan Chase & Co. and Kotak Mahindra Bank Ltd for a potential initial public offering. The company is expected to proceed with an IPO this year, and may seek to raise $750 million or more at a valuation of $7-$8 billion.
Founded in 2016 by four Flipkart executives, Groww is one of the largest stock broking firm and has more than 50 million customers. It includes Microsoft chief executive officer Satya Nadella, Ribbit Capital, Tiger Global, Peak XV among its investors.
Recently, the Bengaluru-based company moved its domicile from the US back to India -- which also saw its fair market valuation being reduced to under $2 billion, down from its previous $3 billion.
It paid Rs 1,340 crore ($160 million) in taxes to the US government during the process of bringing back its parent entity to India, based on this new valuation, ET had then reported.
Groww's revenue from operations surged to Rs 3,145 crore in FY24, up from Rs 1,435 crore in FY23. The stockbroking platform reported a net loss of Rs 805 crore in FY24, largely due to a one-time tax payment of Rs 1,340 crore for relocating its domicile to India. Despite this, the company remained operationally profitable, with profits of Rs 535 crore in FY24 compared to Rs 458 crore in FY23.
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