Groww stock: Shares of brokerage firm Groww will remain in focus on Tuesday ahead of a sizeable block deal launched by early investors seeking to pare their holdings, the deal is expected to take place on May 12. The proposed transaction has a base size of nearly $500 million (around Rs 4,750 crore), with marquee backers such as Peak XV, Y Combinator and Ribbit Capital looking to dilute a combined stake of about 4.3 per cent in the company.

According to the deal terms, investors are looking to sell up to 26.84 crore shares at a floor price of Rs 177 per share. At this price, the total transaction size is estimated to be around Rs 4750 crore. The floor price has been set at an 8.5 per cent discount to the stock's last closing price of Rs 193.52 on the NSE.

The selling shareholders in the proposed block deal include Peak XV Partners Investments VI-1, Sequoia Capital Global Growth Fund III, YC Holdings II and Ribbit Capital-linked entities. The transaction is entirely secondary in nature, meaning the company itself will not receive any proceeds from the share sale. Instead, the money will go to the existing investors selling their stake.

90-day Lock-up After Transaction

As part of the deal structure, the selling shareholders will be subject to a 90-day lock-up period after the transaction, restricting them from selling additional shares during this period. The block deal is expected to be executed on May 12 and will be closely watched by market participants as some of Groww's marquee backers look to partially monetise their holdings.

Groww IPO

Groww, which debuted on the exchanges in November 2025, has seen a sharp rise in its market valuation, now standing at about Rs 1.25 lakh crore, nearly double its IPO valuation. The company had raised Rs 6,632.3 crore through its public issue, comprising a fresh issue of Rs 1,060 crore and an offer for sale of Rs 5,572.3 crore. The stock listed at Rs 114 against an issue price of Rs 100 and has since delivered a gain of approximately 48 per cent from its listing price, with a 25 per cent rise year-to-date.

Groww Q4FY26

Operationally, the company has posted strong growth, with its Q4 FY26 net profit surging 122 per cent year-on-year to Rs 686 crore. Revenue for the quarter jumped nearly 88 per cent to Rs 1,505 crore, while EBITDA rose 122 per cent to Rs 968 crore, reflecting robust margin expansion. EBITDA margins improved to 64.3 per cent, while net profit margins stood at 45.6 per cent. Sequentially, too, the company reported solid gains across revenue and profitability metrics.

Groww's market share gains in mutual funds, stocks, and equity derivatives has increased systematically. During the quarter, its share in the mutual fund segment rose to 14 per cent, while its stockbroking share climbed to 15.7 per cent. The company is also scaling its lending business, deploying earnings towards margin trading facilities (MTF) and loan products such as loans against securities and personal loans.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)