Groww shares slump 4% after major block deal; what’s next for the stock?

Groww shares fell nearly 4% on 16 September amid a block deal involving the transfer of 10.07 crore shares at a floor price of ₹191.45. Brokerage Jefferies maintains a 'Buy' rating, projecting 30% profit growth from its broking business through FY29.

Shares of Billionbrains Garage Ventures, which operates the Groww investment platform, came under pressure on Wednesday, 16 September, slipping nearly 4% on the BSE following a sizeable block deal in the counter.

About 10.07 crore shares, representing roughly 1.6% of the company’s outstanding equity, were reportedly traded through the block transaction. The deal comes amid reports that Peak XV Partners Investments VI-1 and Sequoia Capital Global Growth Fund III - US/India Annex Fund, L.P. were seeking to offload part of their holdings.

Media reports indicated that the shares were offered at a floor price of ₹191.45 apiece. The reported deal price was at a discount to Billionbrains Garage Ventures’ previous closing level.

However, the identities of the buyers and sellers involved in the transaction could not be independently confirmed by Mint.

The indicated floor price reflected a decrease of approximately 3.1% from Groww’s last closing price of ₹197.55. The anticipated deal was valued at approximately ₹1,918 crore. Additionally, shares sold in this transaction will be subject to a 30-day lock-up period before any further sales can occur.

Large share transactions in Billionbrains Garage Ventures are not new. In August, nearly 12.74 crore shares, accounting for around 2.1% of the company’s equity, changed hands through block deals valued at about ₹2,500 crore.

Even as investors track stake sales by existing shareholders, brokerage Jefferies remains positive on the long-term outlook for Groww’s parent company. The brokerage has retained its ‘Buy’ recommendation on Billionbrains Garage Ventures and assigned a target price of ₹240 per share, implying potential upside from current levels.

Jefferies believes Groww is well-placed to benefit from the structural growth in India’s equity-investing ecosystem. The brokerage also expects the company to gain as issues related to the Consolidated Account Statement (CAS) framework are addressed.

According to Jefferies, derivatives trading remains a key earnings driver, with futures and options contributing about 55% of Groww’s revenue. However, the brokerage sees multiple growth engines that could support the company’s performance over the next few years.

Jefferies projects around 30% compound annual growth in profit after tax between FY26 and FY29. This growth is expected to be led by an expanding broking business, driven by a maturing customer base, higher market share and stronger client engagement.

The brokerage also expects newer offerings such as margin trading facilities and wealth management services to add meaningfully to revenue, while operating margins could improve over time.

In addition, Groww is likely to launch US stock investing services in FY27. Jefferies estimates that this business could contribute 5-9% to the company’s earnings by FY28, creating another avenue for growth beyond its core broking operations.

While recent block deals have highlighted investor exits, analysts continue to focus on Groww’s ability to diversify its offerings and expand earnings over the medium term.

Groww share price today opened at ₹194 apiece on the BSE, the stock touched an intraday high of ₹194.45 per share, and an intraday low of ₹188.35 per share.

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, pointing to a predominantly sideways trend. The ADX has also remained largely flat during the period, 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.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.