Shares of Billionbrains Garage Ventures, the parent of popular broking firm Groww, jumped nearly 6% on Wednesday to erase all losses recorded in the previous session after Peak XV Partners and two other US-based investors sold a stake worth nearly Rs 5,326 crore.
Shares of the company fell over 5% on Tuesday amid reports of the block deal. According to exchange data released in the evening, Peak XV Partners Investments, Ribbit Capital, and YC Holdings sold more than 2,952 lakh shares cumulatively worth Rs 5,325.78 crore at an average price of Rs 180.43 apiece via bulk deals on May 12. The average price at which the bulk deals were executed marked a nearly 1.5% discount from the stock’s previous closing price of Rs 183 apiece.
Peak XV has generated over 94 times returns, while Y Combinator and Ribbit Capital generated 52x and 79x returns, respectively, on their investments in the broking firm. Following Tuesday’s block deals, Y Combinator’s Groww stake is worth Rs 9,911 crore, while Ribbit Capital holds shares worth Rs 1,122 crore in the company. Peak XV Partners, meanwhile, netted another Rs 1,116 crore and holds a stake worth Rs 18,000 crore. The fund had invested Rs 200-250 crore in the company.
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Groww share priceGroww is the biggest stockbroker in India in terms of active clients, with a 28% market share. It is followed by Zerodha and Angel One. BofA Securities in April initiated coverage on Groww shares with a ‘Buy’ rating and a target price of Rs 235 apiece, implying an upside potential of more than 28% from the stock’s previous closing price.
The firm had said that Groww is “well positioned to capitalise on India’s retail investing tailwinds,” and expects the company to deliver revenue growth at a 30% CAGR over FY26-28.
Groww shares had made a decent debut on stock markets back in November last year, listing with a premium of 14% over the IPO price at Rs 114 apiece on BSE. The stock skyrocketed more than 99% in just five months to hit a fresh 52-week high of Rs 227 apiece in April this year, nearly doubling investors’ wealth. The stock has declined around 15% since then to trade at Rs 193.50 apiece today, as seen at 10.40 am.
Groww earnings snapshot
Earlier in April, Groww reported a whopping 122% year-on-year rise in consolidated net profit to Rs 686 crore for the fourth quarter of FY26, while revenue from operations climbed 87% YoY to Rs 1,505 crore.
EBITDA for the quarter surged 142% YoY to Rs 939 crore, indicating strong margin expansion. The improvement in profitability was driven by faster revenue growth compared to largely fixed costs, highlighting operating leverage across segments, the company said.
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