Swiggy IPO launches today after securing ₹5,085.02 crore through anchor investors

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Swiggy has officially launched its ₹11,327.43 crore initial public offering (IPO) on November 6, 2024, following a successful ₹5,085.02 crore fundraising from anchor investors the day before. This marks a significant step as Swiggy looks to tap into the public capital markets. The IPO will remain open for subscription until November 8, 2024, and had a grey market premium of ₹11 as of its launch day.

Key Details of Swiggy’s IPO:

  • IPO Closing Date: The offering will close on November 8, 2024, with the allotment of shares expected by November 11, 2024. The shares are likely to be listed on November 13, 2024.
  • Price Range: The price band for the IPO has been set between ₹371 and ₹390 per share, offering investors an opportunity to participate at a competitive rate.
  • Fundraising Objectives: Swiggy aims to raise ₹11,327.43 crore, with ₹4,499 crore expected from the fresh issue of 11.54 crore equity shares and ₹6,828.43 crore coming from the offer for sale (OFS) of 17.51 crore shares.
  • Investment Details: The IPO requires a minimum investment of ₹14,820, based on the upper price band. This corresponds to a lot size of 38 shares.
  • Share Allocation: The share allocation is divided as follows: 75% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors, ensuring broad-based participation.
  • Employee Discount: Employees of Swiggy have been offered 750,000 shares at a ₹25 discount to the market price, providing an incentive for internal stakeholders to participate.
  • Book Running Lead Managers: The IPO is being managed by a group of prestigious investment banks, including Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities, and ICICI Securities. Link Intime India Private Ltd will act as the registrar for the offering.
  • OFS Sellers: The offer for sale (OFS) will include share sales from several prominent investors, including Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures LP, Coatue PE Asia XI LLC, and others.

With a dominant presence in the food delivery market in India, Swiggy’s IPO is set to attract significant attention from investors looking to capitalize on the growth of the digital food services industry. The successful launch of this offering could provide the company with the necessary capital to expand its market share further and enhance its technology-driven platform.

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