Groww block deal alert: Shares fall nearly 3% after 10.07 crore shares change hands; Peak XV, Sequoia Capital likely sellers

Shares of Billionbrains Garages Ventures, the parent company of Groww, declined 2.6% to their day's low of Rs 192 on the BSE on Wednesday after 1.6% equity or 10.07 crore shares changed hands in a block deal. According to multiple media reports, Peak XV Partners Investments VI-1 and Sequoia Capital Global Growth Fund III - U.S./India Annex Fund, L.P. were looking to sell their stake through a block deal at a floor price of Rs 191.45 per share.

The Economic Times couldn't verify the buyers and sellers in the transaction.

The proposed floor price was reportedly at a 3.1% discount to Groww’s last closing price. The base offer is for up to 1.6% of Billionbrains Garage Ventures’ existing total shares outstanding, or TSO, with the deal size amounting to Rs 19.18 crore. Shares sold as part of the transaction will carry a 30-day lock-up on further sales.


In August this year, 12.74 crore shares of Billionbrains Garage Ventures, representing 2.1% of its equity and valued at Rs 2,500 crore, changed hands through block deals.

Jefferies on Groww share price

The brokerage has a ‘Buy’ rating on Groww parent Billionbrains Garage Ventures, with a target price of Rs 240 per share. The target indicates a 22% upside from the stock’s previous closing price of Rs 197.55 on BSE.

Jefferies sees Groww as a better way to play India’s equity story and expects the company to benefit as issues around CAS are resolved. Futures and options account for around 55% of Groww’s revenues, it said.

The brokerage believes Groww has several levers to deliver a 30% PAT CAGR over FY26-29. This is expected to be driven by 18% growth in its broking business, supported by client vintage and market share gains, along with new initiatives such as margin trading facility and wealth management. Jefferies also expects a 10 percentage point expansion in margins.

Groww is also set to add US stocks later in FY27. Jefferies estimates this could contribute 5-9% to FY28 earnings.

Groww Q1 results

For the June quarter (Q1FY27), Groww reported consolidated net profit attributable to shareholders of Rs 735 crore, up 94.44% year-on-year from Rs 378 crore. Revenue from operations rose 66% to Rs 1,501 crore from Rs 904 crore in the corresponding quarter of the previous financial year.

On a sequential basis, net profit increased 7% from Rs 686 crore. EBITDA rose 101% year-on-year to Rs 971 crore from Rs 483 crore and increased 3% sequentially from Rs 939 crore, according to the company’s investor presentation.

The company said it strengthened its market leadership across key segments during the June quarter by adding 115,000 net clients. This was supported by higher customer retention and improved product quality despite an industry-wide slowdown.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.