Groww Block Deal Alert: Early investors in investment platform Groww are looking to offload up to a 4.3 per cent stake in its parent company, Billionbrains Garage Ventures, through a block deal expected to take place on May 12. The proposed transaction could see investors including Peak XV Partners, Sequoia Capital, Ribbit Capital and Y Combinator sell shares in the company.
According to the deal terms, investors are looking to sell up to 26.84 crore shares at a floor price of Rs 177 per share. At this price, the total transaction size is estimated to be around Rs 4750 crore. The floor price has been set at an 8.5 per cent discount to the stock’s last closing price of Rs 193.52 on the NSE.
The selling shareholders in the proposed block deal include Peak XV Partners Investments VI-1, Sequoia Capital Global Growth Fund III, YC Holdings II and Ribbit Capital-linked entities. The transaction is entirely secondary in nature, meaning the company itself will not receive any proceeds from the share sale. Instead, the money will go to the existing investors selling their stake.
90-day lock-up after transaction
As part of the deal structure, the selling shareholders will be subject to a 90-day lock-up period after the transaction, restricting them from selling additional shares during this period.
The block deal is expected to be executed on May 12 and will be closely watched by market participants as some of Groww’s marquee backers look to partially monetise their holdings.
Groww Block Deal Alert | Highlights
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
