A clutch of funds, including Peak XV Partners and Sequoia, would be selling a portion of their stakes in new-age digital brokerage Groww in a ₹4,750-crore block deal Tuesday, according to a term sheet of the proposed transactions seen by ET.
These bulge-bracket investors selling shares in Billionbrains Garage Ventures or Groww, would also include YC Holdings and Ribbit’s funds, besides Sequoia Capital Global Growth Fund and Peak XV, showed the term sheet.
The entities would seek to sell nearly 4.3% stake of the company’s equity, or 268.4 million shares, with an option to upsize the deal based on the demand.
The deal may be executed at a floor price of ₹177 per share, translating into a discount of 8.5% to Monday’s closing price of ₹193.52 apiece. Groww, which lost more than 5% Monday, had a market capitalization of ₹1.2 lakh crore at the end of trading.
Kotak Securities and JP Morgan India are acting as brokers on the deal.
The selling entities did not respond to ET’s emailed queries until the publication of this report.
The stake sale coincides with the expiry of Groww’s six-month post-IPO shareholder lock-in period on Tuesday, which allowed early investors to offload shares.
According to Nuvama Alternative & Quantitative Research, about 4.18 billion shares, or nearly 68% of the company’s outstanding equity, became eligible for trading following the lock-in expiry.
Source: Economic Times