Groww shares fall 3% after Rs 2,500 crore block deal; Ribbit likely seller
Billionbrains Garage Ventures, the parent company of Groww, will be in focus as early investor Ribbit Capital plans to sell a 1.6% stake through a block deal worth Rs 1,914 crore. The shares are being offered at Rs 195 apiece, a 4% discount to the previous close.
Shares of Groww, the investment platform operated by Billionbrains Garage Ventures, experienced a 3% decline on Wednesday following a Rs 2,500 crore block deal. During this transaction, 12.75 crore shares, representing approximately 2.1% of the company's equity, changed hands. The deal involved Ribbit Capital, a prominent investor in Groww, which was set to sell a portion of its stake in the company.
The shares were offered at a floor price of Rs 195 each, which is 4% below the previous trading close. This floor price serves as the minimum price at which Ribbit Capital is willing to sell the shares to investors. The deal will allow Ribbit Capital to partially monetize its investment in Groww while still retaining its remaining stake in the company.
Additionally, Ribbit Capital will be subject to a 30-day lock-up period following the transaction, which prevents them from selling additional shares in the company during this time. Such lock-up provisions are commonly included in large block transactions to ensure that the seller does not immediately return to the market with another significant tranche of shares.
According to the latest shareholding data, Ribbit Capital holds 35.38 crore shares, or 5.64% of Groww, while Ribbit Cayman GW Holdings V, Ltd. holds 27.97 crore shares, representing a 4.46% stake. Together, these two entities hold a 10.10% stake in the company as of the end of the June quarter.
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