Groww Shares Surge 6% Following Major Stake Sale by Investors
Groww shares jump 6% even as Peak XV, two other US investors sell stake worth Rs 5,326 crore. What lies ahead?
The Economic Times
Image: The Economic Times
Shares of Billionbrains Garage Ventures, the parent company of Groww, rose nearly 6% after Peak XV Partners and two US investors sold stakes worth approximately ₹5,326 crore ($640 million USD). Despite a previous drop, analysts remain optimistic about Groww's growth potential, forecasting a 30% revenue increase over the next few years.
- 01Groww shares increased nearly 6% after significant stake sales by investors.
- 02Peak XV Partners and others sold shares worth ₹5,326 crore ($640 million USD).
- 03BofA Securities has a 'Buy' rating on Groww with a target price of ₹235.
- 04Groww reported a 122% YoY increase in net profit for Q4 FY26.
- 05The company holds a 28% market share in India's retail stockbroking sector.
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Shares of Billionbrains Garage Ventures, which operates the popular broking firm Groww, surged nearly 6% on Wednesday, recovering from a previous loss after Peak XV Partners, Ribbit Capital, and YC Holdings sold a combined stake worth approximately ₹5,326 crore ($640 million USD). The block deal involved over 2,952 lakh shares sold at an average price of ₹180.43 per share, reflecting a slight discount from the prior closing price of ₹183. Despite the stake sale, analysts at BofA Securities maintain a 'Buy' rating on Groww, projecting a target price of ₹235, indicating a potential upside of over 28%. This optimism is supported by Groww's strong performance, with a 122% year-on-year increase in net profit to ₹686 crore for the fourth quarter of FY26 and an 87% rise in revenue from operations. With a 28% market share, Groww is the largest stockbroker in India by active clients, ahead of competitors like Zerodha and Angel One.
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The increase in Groww's share price and strong financial performance may enhance investor confidence and attract more retail investors to the platform, potentially leading to increased competition in the stockbroking sector.
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