Microsoft CEO-Backed Groww to Make Public Filing For India IPO

Billionbrains Garage Ventures Ltd., the parent of India's largest investment platform Groww, is preparing to file for an initial public offering in Mumbai as early as next week, according to people familiar with the matter.

Backed by Microsoft Corp. Chief Executive Officer Satya Nadella, the firm is seeking to raise between $650 million and $800 million at a valuation of up to $8 billion, the people said, asking not to be identified as the information is private. 

If the valuation holds, Groww would become India's largest brokerage by market value. Its nearest listed competitor Angel One Ltd. is currently worth about $2.3 billion, data compiled by Bloomberg show.

The deal size could revised if the market regulator approves lowering the minimum public float for large listings, one of the people said. Current rules require at least 10%, but the proposal would let companies with a post-IPO market value of 500 billion rupees to 1 trillion rupees to list with just 8%.

JPMorgan Chase & Co., Kotak Mahindra Bank Ltd. Citigroup Inc, Axis Bank Ltd. and Motilal Oswal Investment Advisors are advising the offering, the people said. Details, including size and timing, could still change, they said.

A spokesperson for Billionbrains Garage, as well as representatives for JPMorgan, Kotak, Citigroup, Axis and Motilal, did not respond to emailed requests for comment.

As of August, Groww had 12.07 million active clients on the National Stock Exchange of India Ltd., giving it a 26% share of the bourse's user base, according to the exchange's website. 

Other investors in Groww include Peak XV Partners, Ribbit Capital and Tiger Global Management, according to the company's website.

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