CCI clears Groww’s bonus share issue, ends founders’ special rights ahead of IPO

The Competition Commission of India has approved a proposal by stock broking platform Groww to issue bonus shares to its existing investors.

This move comes as Groww, officially known as Billionbrains Garage Ventures Private Ltd., prepares for its Initial Public Offering and plans to remove the special voting rights previously held by its founders.

Regulatory nod for key changes
The CCI's approval means certain shareholders will acquire additional voting rights, and Groww will issue bonus compulsorily convertible preference shares to all its existing equity investors.

These investors include well-known venture capital firms such as Peak XV, Ribbit Capital, YC Holdings, Tiger Global and ICONIQ. The founders’ differential voting rights will also be collapsed, which effectively places all shareholders on a more equal footing.