Goldman Sachs Acquires Stake in Groww Parent Company for ₹210 Crore
Groww shares in focus as Goldman Sachs buys stake in Rs 210-crore block deal
Image: The Economic Times
Goldman Sachs has purchased over 1.13 crore shares of Billionbrain Garage Ventures, the parent company of Groww, for ₹210.43 crore. This acquisition, representing a 0.18% stake, comes after Groww reported a significant profit increase of 122% in Q4, reaching ₹686 crore.
- 01Goldman Sachs acquired 1,13,43,750 shares at an average price of ₹185.50 each.
- 02Groww's Q4 consolidated net profit surged to ₹686 crore, a 122% increase year-on-year.
- 03Revenue from operations for Groww rose to ₹1,505 crore, an 87% increase from the previous year.
- 04EBITDA for the quarter climbed 142% to ₹939 crore due to improved margins.
- 05Employee benefit costs increased by 44% to ₹173 crore, while marketing expenses rose by 34% to ₹393 crore.
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Goldman Sachs has made headlines by acquiring over 1.13 crore shares of Billionbrain Garage Ventures, the parent company of Groww, in a block deal valued at ₹210.43 crore. This transaction, which took place on Thursday, translates to a 0.18% stake in the Bengaluru-based firm, with shares purchased at an average price of ₹185.50. The seller in this deal was venture capital firm Friale. In its latest quarterly results, Groww reported a consolidated net profit of ₹686 crore for Q4, marking a remarkable 122% year-on-year increase. Revenue from operations also saw a significant rise, reaching ₹1,505 crore, an 87% increase compared to the same period last year. The company's EBITDA grew by 142%, reflecting improved operational margins. Despite a recent decline of 14% in share price over the past month, Groww's stock remains up approximately 23% year-to-date. The company attributes its profitability surge to revenue growth surpassing fixed costs, highlighting strong operational leverage across its business segments.
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This acquisition may influence investor confidence in Groww, potentially stabilizing or enhancing its stock price.
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