Groww convenes EGM for shareholder approval of GIC, Iconiq investment

Wealth management firm Groww has convened an extraordinary general meeting (EGM) of its shareholders to approve a series F investment from GIC and Iconiq Capital, according to a company disclosure.

On May 26, Bengaluru-based Groww confidentially filed for an initial public offering (IPO) with markets regulator SEBI (the Securities and Exchange Board of India) under the pre-filing mechanism. Moneycontrol had reported that Iconiq is likely to pump in $150 million in the broking firm’s pre-IPO funding round of $300 million, at a valuation of $7 billion.

The Iconiq investment is coming through its vehicle ISP VII-B Blocker GW Ltd, and the Singapore firm GIC is coming through Viggo Investment Pte Ltd.

Both companies are getting 1.4 percent stake for Rs 867 crore each, in a cumulative fund raise of Rs 1,735 crore, or around $200 million. This values Groww at $7.1 billion.

The pre-IPO round is around $300 million, and another $100 million tranche is coming, possibly at slightly different terms or valuation, according to a source aware of the matter.

Groww, the country’s largest stockbroker by active investors, is likely to take a conservative IPO valuation of $7-8 billion, considering the market sentiment and volatility.