Synopsis: Shares of the fintech platform tumbled sharply on Tuesday after early investors offloaded a significant stake through block deals, compounding losses from the previous session
Shares of the online investment platform took a sharp hit on Tuesday as early-stage investors moved to monetise their holdings following the expiry of the IPO lock-in period. The selling pressure pushed the stock to a fresh low, with cumulative losses now approaching 15 percent over the past five trading sessions.
With a market cap of ₹ 1,16,658 Crore, the shares of Billionbrains Garage Ventures Ltd are trading at a price of₹ 185.25 i.e. 4.79 percent down from its previous closing price of₹ 194.55. It currently trades at P/E of56.
What’s the News
Shares of Billionbrains Garage Ventures Ltd, the company behind the Groww app, dropped nearly 7 percent on Tuesday. The selling pushed the stock to a new low, with the shares falling around 12 per cent in just two days. The main reason behind the fall was a large block deal worth ₹4,750 crore that hit the market.
The trigger was the expiry of the IPO lock-in period. A total of 418.19 crore Groww shares, representing 68 percent of its outstanding equity, became eligible for trading from Tuesday. Within the first ten minutes of trade, shares worth ₹7,022 crore – totalling 38.84 crore shares – changed hands on the exchange.
Early investors including Peak XV (Peak XV Partners Investments VI-1), Sequoia (Sequoia Capital Global Growth Fund III), Y Combinator (YC Holdings II, LLC), and Ribbit Capital, launched block deals on the counter. The selling shareholders collectively offloaded around 26.84 crore shares worth ₹4,750.68 crore at approximately ₹177 per share – a discount of 8.6 percent to Monday’s closing price. The shares on offer accounted for 4.3 percent of the company’s total outstanding equity.
Kotak Securities Limited served as the placement agent for Peak XV, Sequoia, and Y Combinator, while JP Morgan India Private Limited acted as the placement agent for Peak XV, Sequoia, and Ribbit. The transactions were executed through vendor sale on the screen-based trading platform of the NSE.
About the Company
Billionbrains Garage Ventures Ltd, popularly known as Groww, is one of India’s largest retail investment platforms. It operates a digital investment and financial services platform that allows users to invest in stocks, mutual funds, IPOs, ETFs, F&O, and digital gold through its mobile app and website. The company earns revenue primarily from brokerage fees, subscription products, interest income, and transaction-based services. Focused on retail investors, Groww has built a strong presence in India’s online investing market through a simple user interface and low-cost investment products.
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