Shares of Billionbrains Garage Ventures, the parent company of the Groww investment platform, came under pressure on Wednesday, September 16, declining nearly 4% on the BSE following a sizeable block deal.
Approximately 10.07 crore shares, representing around 1.6% of the company’s outstanding equity, were reportedly traded through the transaction.
The development came amid reports that Peak XV Partners Investments VI-1 and Sequoia Capital Global Growth Fund III – US/India Annex Fund, L.P. were looking to sell part of their holdings.
Groww Block Deal Reportedly Valued at ₹1,918 Crore
According to media reports, the shares were offered at a floor price of ₹191.45 apiece. The reported deal price represented a discount to Billionbrains Garage Ventures’ previous closing price.
The identities of the buyers and sellers involved in the transaction could not be independently confirmed by Mint.
The indicated floor price was approximately 3.1% below the previous closing price of ₹197.55. The reported transaction was valued at around ₹1,918 crore.
Shares sold in the transaction will also be subject to a 30-day lock-up period, during which further sales will not be permitted.
Large share transactions in Billionbrains Garage Ventures are not new. In August, nearly 12.74 crore shares, equivalent to around 2.1% of the company’s equity, changed hands in block deals valued at approximately ₹2,500 crore.
Jefferies Retains Buy Rating on Groww
Despite investor attention on stake sales, brokerage Jefferies has retained its ‘Buy’ recommendation on Billionbrains Garage Ventures and assigned a target price of ₹240 per share, according to the supplied report.
The brokerage expects Groww to benefit from the structural growth of India’s equity-investing ecosystem. It also anticipates potential gains as issues related to the Consolidated Account Statement (CAS) framework are addressed.
Derivatives Remain a Key Revenue Driver
According to Jefferies, futures and options contribute approximately 55% of Groww’s revenue, making derivatives trading a significant earnings driver.
The brokerage has identified several potential growth engines for the company, including:
- Expansion of its broking business
- A maturing customer base
- Higher market share
- Stronger client engagement
- Margin trading facilities
- Wealth management services
Jefferies projects approximately 30% compound annual growth in profit after tax between FY26 and FY29.
The brokerage also expects newer offerings, including margin trading facilities and wealth management, to contribute meaningfully to revenue while operating margins improve over time.
US Stock Investing Services in Focus
Groww is expected to launch US stock investing services in FY27, according to the report.
Jefferies estimates that the business could contribute 5–9% of the company’s earnings by FY28, creating another potential revenue stream beyond its core broking operations.
Groww Share Price Today: Intraday Trading Range
Groww shares opened at ₹194 on the BSE on Wednesday. The stock touched an intraday high of ₹194.45 and an intraday low of ₹188.35, according to the supplied data.
Technical Outlook
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said Groww has been moving in a consolidation phase within the ₹185–205 range since the beginning of August.
He noted that the stock’s moving averages have flattened, indicating a predominantly sideways trend. The Average Directional Index (ADX) has also remained largely flat, suggesting a lack of strong directional momentum.
According to Shah, a decisive breakout above or below the ₹185–205 range could determine the stock’s next directional move.
What Investors Are Watching
The reported block deal has brought shareholder exits into focus, while analysts continue to track Groww’s expansion into new financial products and services.
Key factors under watch include the company’s ability to diversify revenue, expand its broking business, launch US stock investing services, and deliver the earnings growth projected by analysts.
Note: The block deal details, analyst views, price data and projections in this article are based on the supplied source material. The reported transaction does not establish the identities of all buyers and sellers, which could not be independently confirmed.
