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Groww files updated draft papers for around ₹7,000 crore IPO
MINT· 2025-09-16 15:31
Company Overview - Groww has filed an updated draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of approximately ₹7,000 crore, aiming to raise fresh capital of ₹1,050 crore, while ₹5,000-6,000 crore will be from the offer for sale component [1] - The founders own 27.96% of the company and have a 20% lock-in period for one and a half years from the listing date, offering to sell about 0.07% of the total shares in the IPO [2] - The size of the IPO has been reduced from an initial expectation of ₹8,300 crore, reflecting a trend among several companies to lower their issue sizes amid muted investor feedback and lower valuations [3][4] Financial Performance - Groww's profit surged over threefold in FY25 to ₹1,819 crore, compared to ₹545 crore in FY24, with revenue increasing to ₹4,056 crore, marking a 31% rise over FY24 [6] Strategic Moves - In May, Groww signed an agreement to acquire wealth-tech startup Fisdom for around $150 million in an all-cash deal [5] - The company is likely to use the minor primary funding for expanding its margin trade facility, unsecured lending, and wealth management segments, and may explore inorganic growth opportunities in these areas [3] Investment and Valuation - Following funding from GIC, Groww was valued at $7 billion, with a total of $393.3 million raised in funding to date [5][6] - The company had previously announced a $251 million series E round at a $3 billion valuation in October 2021 [6] Corporate Structure - Groww was founded in 2016 and has relocated its parent entity from Delaware, US, to Bengaluru, making Billionbrains Garage Ventures the primary Indian company [7]
NatWest Group(NWG) - 2025 Q2 - Earnings Call Transcript
2025-07-25 09:00
Financial Data and Key Metrics Changes - Customer lending grew 3.2% to GBP 384 billion, while customer deposits increased by 1% to GBP 436 billion [3][4] - Income rose 13.7% to GBP 8 billion, and costs decreased by 1.4% to GBP 3.9 billion, resulting in an operating profit of GBP 3.6 billion and attributable profit of GBP 2.5 billion [4][5] - Return on tangible equity was 18.1%, and earnings per share increased by 28% to 31p [4][5] - Interim dividend announced at 9.5p, up 58%, with TNAV per share growing 16% to 351p [5] Business Line Data and Key Metrics Changes - Retail Banking saw lending growth of 3%, with deposits up 1% [7] - Commercial and Institutional lending increased by 4% and deposits by 2%, driven by project finance and sustainable finance [8] - Private Banking and Wealth Management experienced a 2% growth in lending and net new inflows of GBP 1.5 billion, representing 8.1% of opening AUM [9] Market Data and Key Metrics Changes - The bank attracted over 100,000 new customers through organic growth and the Sainsbury's transaction, which added around 1 million new customers [6][7] - The bank's share in credit cards increased from 9.7% to 11% due to the Sainsbury's acquisition [8] Company Strategy and Development Direction - The company is focused on disciplined growth, customer base expansion, and enhancing customer experience through digitization and simplification [6][10] - A new target of delivering GBP 200 billion in climate and transition finance by 2030 has been set, building on previous achievements [9][10] - The bank is modernizing its technology and operational model, including a strategic collaboration with AWS and Accenture to enhance data capabilities [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue delivering broad-based lending growth despite a challenging UK economic backdrop [49][50] - The bank upgraded its 2025 guidance for income to greater than GBP 16 billion and return on tangible equity above 16.5% [15][29] - Management noted that the diversified loan book is performing well, with expectations of a loan impairment rate below 20 basis points for the full year [25][29] Other Important Information - The CET1 ratio remained stable at 13.6%, with strong capital generation allowing for investments and shareholder returns [5][28] - The bank is actively managing its balance sheet, generating 101 basis points of capital in the first half [14] Q&A Session All Questions and Answers Question: On deposit flows and current accounts - Management acknowledged the growth in deposits but noted some loss in current accounts, attributing it to a disciplined pricing strategy amid competitive conditions [34][39] Question: On lending outlook and revenue guidance - Management expressed confidence in continued lending growth, supported by strong volumes and the full run rate from the Sainsbury's acquisition [46][49] Question: On capital management and potential M&A - Management clarified that they are not building a buffer for M&A but are focused on organic growth and maintaining a balanced capital allocation strategy [52][53] Question: On structural hedge and mortgage spreads - Management indicated that the structural hedge is performing well, with expectations of continued support for income, while mortgage spreads are stabilizing [57][63] Question: On FX risk management derivatives - Management explained that FX risk management activities are designed to take advantage of market volatility, contributing positively to overall income despite appearing as negative NII [98][101] Question: On lead reforms and mortgage market opportunities - Management expressed support for lead reforms, anticipating positive impacts on the mortgage market and increased borrowing capacity for first-time buyers [104][106]