Block deal today: Groww shareholders to sell $200 million worth shares at 3% discount

Shares of Billionbrains Garage Ventures Ltd (Groww) are in focus on Wednesday as 10.02 crore company shares are likely to trade in a block deal at Rs 191.45 per share, according to the term sheet. The floor price is at 3.08 per cent discount to Groww's previous closing price of Rs 197.55 apiece.

Among the sellers are Peak XV Partners Investments VI-1 and Sequoia Capital Global Fund III - US/India Annex Fund. At the offer price, the selling shareholders are seeking about $200 million, Bloomberg reported.

As per reports, the base offer size is up to 1.6 per cent of the company’s existing total shares outstanding (TSO). The shares will be subject to a 30-day lock-up on further sale.

Groww block deals

To recall, Groww saw 7.78 crore shares changing hands in two block trades worth nearly Rs 1,500 crore in August, accounting for about 1.2 per cent of the company’s total outstanding equity, according to Bloomberg data. Around 7.52 crore Groww shares changed hands at Rs 193.45 apiece for Rs 1,450 crore. Besides, 26.10 lakh Groww shares changed hands at Rs 193.10 apiece for Rs 50.32 crore.

Groww target prices

Groww is consensus Buy, with eight 'Buy' calls and one 'Hold' recommendation. The 12-month target price for the Groww stock at Rs 241.67 implies 22.3 per cent potential upside on the stock. Jefferies earlier this month suggested 'Buy' on the stock with a target of Rs 240. Kotak Institutional Equities last month suggested a target of Rs 245 on the stock.

Citi has a target of Rs 255 on the stock. Avendus Spark's target stands at Rs 240. UBS in July suggested a target of Rs 210 on the stock.