Groww adds commodities trading ahead of planned IPO
What's the story
Groww, a leading stock broker in India, has expanded its service portfolio by launching commodities trading on its platform. The new feature allows customers with active trading accounts to trade in crude oil, gold, silver, and natural gas through the Metropolitan Stock Exchange. The trading hours are from 9:00am to 11:30pm. This move comes as part of Groww's strategic diversification push ahead of its upcoming initial public offering (IPO).
Market response
The new feature is expected to meet the demand
The launch of commodities trading comes as Indian traders show a growing interest in diversifying their portfolios and hedging against market volatility. The new feature is expected to meet this demand, further strengthening Groww's position in the capital markets space. Over the last few months, Groww has introduced several offerings, including corporate bonds, Margin Trading Facility, and 915, a platform for pro-traders.
Business expansion
Groww launched W after acquiring Fisdom
Along with these offerings, Groww also launched W, a wealth management service, after acquiring Fisdom. The company now boasts over 18 million active customers on its platform. This impressive customer base is likely to benefit from the new commodities trading feature, further expanding Groww's reach in the Indian financial market.
IPO preparations
Parent company files updated draft papers
Last month, Billionbrains Garage Ventures, the parent company of Groww, filed updated draft papers with the Securities and Exchange Board of India (SEBI) for an IPO. Industry sources estimate the issue size at ₹7,000 crore. The proposed IPO includes a fresh issue of equity shares worth ₹1,060 crore and an Offer For Sale (OFS) component of 574,190,754 equity shares by promoters and investor shareholders.