Groww block deal worth up to ₹4,750 crore launched; Sequoia, YC among likely sellers

A block deal in Billionbrains Garage Ventures Ltd., the parent company of Groww, has been launched, CNBC-TV18 has learnt from sources familiar with the matter.

The transaction has an offer floor price of ₹177 per share, implying an 8.5% discount to the stock’s previous closing price. The base deal size is pegged at around ₹4,750 crore, representing nearly 4.3% of the company’s total equity, with an option to upsize the offering further.

Existing investors including Peak XV Partners Investments VI-1, Sequoia Capital Global Growth Fund III – U.S./India Annex Fund, Y Combinator’s YC Holdings II LLC, and Ribbit Capital entities are among the likely sellers in the transaction.

Sources added that a 90-day lock-up period on further share sales will apply after the block deal.

The development comes a day after shares of Billionbrains Garage Ventures fell over 2% amid investor focus on the expiry of the shareholder lock-in period. According to Nuvama Alternative & Quantitative Research, nearly 68% of the company’s outstanding equity — valued at around ₹85,557 crore based on Friday’s closing price — became eligible for trading from May 12.

However, the expiry of the lock-in period only makes shares eligible for sale and does not necessarily mean all shares will be sold in the market.

The company had reported a strong operational performance in the March quarter, with revenue rising 24% sequentially and net profit increasing 25% quarter-on-quarter.

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Management had also indicated during the earnings call that both Fisdom and Groww Mutual Fund are likely to break even by FY28, while ARPU levels have recovered to pre-November 2024 levels.