Groww AMC Valuation Soars 14x as US Firm State Street Acquires 23% Stake for Rs 580 Cr

• Groww is selling a 23% stake in its AMC business to US-based State Street Global Advisors for Rs 580 crore, valuing Groww Mutual Fund at Rs 2,500 crore.
• This stake sale represents a 14x return on Groww's initial Rs 175 crore investment in Indiabulls' mutual fund business (now Groww Mutual Fund) in 2023.
• The transaction involves Rs 381 crore via secondary share sale to Groww and Rs 199 crore as primary capital infusion into the AMC.
• Groww will retain a 77% majority stake and full operational control, while State Street Global Advisors, a top global asset manager, will hold less than 4.99% voting power.
• Groww shares jumped over 5% to Rs 173 apiece, having surged 73% from its IPO price of Rs 100 and 54.5% from its listing price of Rs 112 on NSE.

Why It Matters: Groww AMC's valuation surged 14x in under three years, fueled by a strategic 23% stake sale to State Street Global Advisors.