Zerodha-rival Groww is planning an IPO in India
Leading online trading platform Groww is considering an initial public offering (IPO), its co-founder and CEO, Lalit Keshre, has revealed. The announcement was made at an event in New Delhi. However, Keshre didn't mention when exactly the IPO would take place. He said it's "somewhere down the line," adding while plans are in motion, no specific date has been fixed for the big financial move.
Groww shifts headquarters to India amid IPO plans
In a strategic move, Groww recently shifted its headquarters from the US to India. Keshre highlighted the importance of the decision, saying it brings the company's operations in line with its customers. He said, "Groww is an Indian company. Customers are in India, management is in India, all operations are in India." Despite high taxes involved in the move, Keshre thinks it's a long-term investment for their benefit.
Groww's customer base shows interest in derivatives trading
Keshre revealed that 15% to 20% of Groww's customers are into derivatives trading. He acknowledged the recent surge in interest in the last few years, and expressed support for regulatory measures to safeguard investors. "Over the last few years, the interest in derivatives trading was high," he said, adding that regulators' focus on customer and investor protection aligns with their thought process.
Keshre supports SEBI's measures to protect retail investors
Keshre echoed his agreement with the direction Indian regulators are taking to protect retail investors. He admitted that the recent norms by the Securities and Exchange Board of India (SEBI) on derivatives trading will affect volumes. SEBI has introduced steps to limit retail investor losses in equity index derivatives trading, including increasing the minimum contract size.
Keshre credits internet connectivity for rise in retail investing
Keshre credited the growth of retail investing in India to better internet connectivity and the debut of Aadhaar and UPI. He also noted that mutual funds continue to be a popular investment tool for retail investors, with a lot of innovation taking place in the space. On regulatory concerns and if retail investors need protection from derivatives trading, he said, "There are certain things where customer protection is very important."
