Online trading platform Groww is thinking about launching an initial public offering (IPO) in the future, according to co-founder and CEO Lalit Keshre. Speaking at an event in New Delhi, Keshre mentioned that while an IPO is on the horizon, no specific timeline has been set. He said, “Maybe in some time. It’s somewhere down the line, but we don’t know when.”
India’s IPO market has been growing rapidly, and many companies are seizing the opportunity to go public, taking advantage of the country’s economic growth.
Groww, founded in 2016, recently moved its headquarters from the US back to India. Keshre highlighted that this move made sense as the company’s customers, management, and operations are all based in India.
“Groww is an Indian company. Customers are in India, management is in India, all operations are in India, so it did not kind of make sense to be outside India,” Keshre said, adding that while moving back might have financial costs, it would benefit the company in the long run.
Regarding trading in futures and options (F&O) and derivatives, Keshre noted that 15% to 20% of Groww’s customers are engaged in this type of trading. He expressed support for regulatory measures aimed at protecting investors, acknowledging that recent changes from the Securities and Exchange Board of India (SEBI) could affect trading volumes.
SEBI’s new rules aim to reduce retail investor losses in F&O trading by increasing the minimum contract size. Additionally, the National Stock Exchange (NSE) plans to discontinue weekly derivative contracts for certain indices, like Nifty Bank, from November 20, 2024, and replace them with monthly contracts. Keshre acknowledged that while this would have an impact, it aligns with Groww’s long-term goals of safeguarding customers’ investments.
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