(Reuters) – Stock broking firm Groww filed updated draft documents for its initial public offering on Tuesday, which comprised a fresh issue of shares worth up to 10.6 billion rupees and the offloading of 574.2 million shares from existing shareholders.
Boosted by rising financial literacy, easy digital onboarding and low-cost trading, India has seen a surge in first-time investors using mobile platforms such as Groww to enter securities markets.
The company, backed by investors such as Tiger Global and Peak XV Partners, has more than 14 million active customers, making it the country’s top stock broker by active clients.
Despite strong growth in recent years, capital market penetration in India has been low, which leaves considerable room for growth.
Only 16% to 18% of Indian adults hold a demat account, which allows investors to hold shares in an electronic form.
Reuters reported in May that Groww had confidentially filed the draft papers for an IPO, with sources putting the offering’s size between $700 million and $1 billion.
A confidential filing allows companies to seek the regulator’s comments without disclosing IPO documents to the public. Food delivery platform Swiggy and Vishal Mega Mart went public late last year using this route.
Groww received the markets regulator’s nod for an IPO in August.
The company reported net profit of 3.78 billion rupees for the quarter ended June 30, compared with 3.38 billion rupees a year earlier.
However, its revenue from operations fell to 9.04 billion rupees in the June quarter from 10.01 billion rupees a year ago.
Founded in 2016, the company competes with local rivals such as Zerodha and Angel One.
(Reporting by Nishit Navin; Editing by Shreya Biswas)
