Swiggy IPO: Everything You Need to Know About Opening Date, Price, and Size

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Swiggy IPO: Essential Details on Opening Date, Size, and Pricing

Swiggy, a leading food and grocery delivery platform, is set to launch its initial public offering (IPO) on November 6, 2024. According to multiple sources cited by Moneycontrol, the company is targeting a valuation of approximately $11.3 billion (around ₹95,000 crore) at the time of the IPO.

The IPO’s size has been revised, with the fresh issue of equity shares now expected to raise around ₹4,500 crore. The offer-for-sale (OFS) portion will be adjusted depending on investor demand.

Swiggy recently updated its draft documents submitted to the Securities and Exchange Board of India (SEBI) for a ₹10,000 crore IPO, following prior approval of the confidential offer document.

IPO Breakdown

The Swiggy IPO will consist of a fresh issue of equity shares worth ₹3,750 crore, alongside an OFS portion comprising 18.52 crore equity shares from existing stakeholders. The shareholders involved in the OFS include firms such as Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, and Tencent Cloud Europe BV, among others.

Swiggy aims to raise up to ₹3,750 crore from fresh equity and an additional ₹6,664 crore from the OFS, as per PTI’s report.

Pre-IPO Fundraising

Swiggy is also contemplating a pre-IPO funding round, which could adjust the size of the fresh issue accordingly. The company initially filed its offer document through a confidential pre-filing route on April 30. SEBI then reviewed the confidential draft red herring prospectus (DRHP) and provided feedback, leading to updated drafts for public review.

IPO Timeline

According to Moneycontrol, the IPO will open on November 6 and close on November 8, with the anchor book portion of the offering set to open on November 5.

IPO Pricing

The price band for the IPO has not yet been determined but is expected to be announced in the coming week.

Use of IPO Proceeds

The funds raised through the IPO will be allocated to several key areas. ₹137.41 crore will be used to repay debt for Swiggy’s subsidiary, Scootsy. Additionally, ₹982.40 crore will be invested in expanding Scootsy’s Dark Store network, with ₹559.10 crore dedicated to establishing new Dark Stores and ₹423.30 crore allocated for lease or licensing fees.

Other proceeds will be allocated to technology and cloud infrastructure (₹586.20 crore), brand marketing and business promotion (₹929.50 crore), and general corporate purposes, including inorganic growth.

Company Overview

Founded in 2014, Swiggy was valued at nearly $13 billion as of April 2024. As of March 31, 2023, the company reported annual revenue of USD 1.09 billion and employs over 4,700 people, according to Tracxn, a global startup data platform.

Earlier in April, Swiggy obtained shareholder approval for its IPO, aiming to raise ₹10,414 crore through the issue of fresh equity shares and an offer for sale. A special resolution was passed during an extraordinary general meeting held on April 23.

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