Online trading platform Groww is considering an initial public offering (IPO), said its co-founder and chief executive officer, Lalit Keshre. Speaking at an event in New Delhi, Keshre said the IPO is “somewhere down the line” but did not mention any specific timeline.
“Maybe in some time. It’s somewhere down the line, but we don’t know when,” he said.
Given India’s booming IPO market, many companies are capitalising on the country’s economic growth prospects by going public.
Keshre emphasised the importance of aligning the company’s operations with its customer base.
“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,” he said.
“There is no reason why we should not be in India.”
When asked about high taxes on relocation to India, he said, “In the long term, that’s a price you pay, but in the long term, it’s good for us.”
Regarding futures and options (F&O) and derivatives trading, Keshre said 15 per cent to 20 per cent of Groww customers are involved in derivatives trading.
He commented on the recent rise in interest over the last few years and supported regulatory efforts to protect investors.
“Over the last few years, the interest in derivatives trading was high. Regulators think about customers and investors, and it more or less aligns with our thought process. What matters is what money our people are making in the longer term,” he explained.
Retail investor protection
On the issue of retail investor protection, the Groww CEO agreed with the direction the Indian regulators are taking.
Commenting on the consequence of the recent Securities and Exchange Board of India’s (Sebi) norms on derivatives trading, he said: “It will impact (volumes). Of course, there will be impact.”
Sebi had announced measures aimed at curbing retail investor losses in equity index derivatives (F&O) trading, including raising the minimum contract size. In a related move, the National Stock Exchange (NSE) announced that starting November 20, 2024, weekly derivative contracts for Nifty Bank, Nifty Midcap, and Nifty Financial Services will be discontinued and converted into monthly contracts.
