Billionbrence Garage Ventures, a parent company of brokerage firm Grow, has submitted draft papers from the confidantial route near the capital market regulator SEBI for IPO. The IPO size can range between $ 70 million to $ 1 billion. It will also have an offer for sale from new shares as well as promoters and existing investors. Moneycontrol has come to know from those who know the case that the US investment company Iconic Capital can invest $ 150 million in a $ 7 billion valuation in the pre-IPO funding round of the Grow. The pre-IPO funding round can be $ 300 million.
On 15 May, GIC-based GIC had sought permission from the Competition Commission of India (CCI) to invest in Grow on a post-money valuation of $ 7 billion. Sources say that the iconic may soon file an application with the CCI.
SEBI can decide within 2-3 months
SEBI is expected to take a decision on Grow’s IPO within 2-3 months. Draft filing companies from the confidantial route provide secrecy to the companies until they reach the final decision on the listing. If necessary, they can later withdraw the draft without disclosing important information based on market conditions. Confidential pre-filing companies allow sensitive business details or financial metrics and risk to be confidential, especially from computers. On the other hand, Standard DRHP (Draft Red Herring Prospectus) becomes a public document after filing.
Grow’s competitions include Zerodha and Upstox. Its last valuation was estimated at $ 3 billion during the series e round in 2021. Prominent investors of the company include Tiger Global, Peak XV Partners and Rebit Capital. There are about 1.3 crore active investers on the grow platform. In comparison, 78 lakhs on Jirodha platform and Angel One has 75 lakh active investors.
Mutual Fund Investing Plague Starts
Grow started in 2016 as a mutual fund investing platform. Then it continuously expanded by offering stocks, IPOs and ETFs. Grow has a strong distribution of mutual funds (including its own MFS) and Systematic Investment Plan (SIP) portfolio with its large customer base. The company’s revenue increased to Rs 3,145 crore in FY 2024 on the consolidated basis. The consolidated operating profit increased by 17 percent to Rs 535 crore. Grow shifted his registered office during the financial year 2024 to Bangalore from the Delaware of America.
Recently, there was news that Groww Wealth Management Startup Fisadom (FISDOM) is going to buy in a $ 150 million cash deal. SEBI approval is yet to be received on this deal and it may take 2-3 months. Purchase of 100% stake in Fisadom will expand the product offering of Grow. This will be Grow’s second major acquisition after the acquisition of Indiabulls AMC in May 2023.
