Swiggy IPO Mumbai/IBNS: Swiggy, the leading Indian food and grocery delivery company, is set to launch its initial public offering (IPO) to raise Rs 11,300 crore.
The IPO will be open for public subscription from November 6 to November 8, with a price range of Rs 371 to Rs 390 per share, media reports said.
The bidding window for anchor investors will be available on November 5, according to reports.
This IPO, one of the most anticipated in India’s capital market, includes a fresh issue of shares worth Rs 4,500 crore and an offer for sale (OFS) of Rs 6,800 crore.
Key shareholders participating in the OFS include prominent investors such as Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VII-A Mauritius, and Tencent Cloud Europe B.V., as per reports.
Long-term investors like Accel, Elevation Capital, and Norwest Ventures are poised to earn up to 35 times their original investment on the shares being sold. However, SoftBank will continue to remain a shareholder.
According to the IPO documents, Swiggy plans to allocate Rs 137.41 crore from the fresh issue towards repaying debt for its subsidiary, Scootsy.
Additionally, Rs 982.40 crore will be invested in expanding Scootsy's dark store network in the quick-commerce segment.
This includes Rs 559.10 crore for setting up new dark stores and Rs 423.30 crore for lease or licensing costs, reports said.
Swiggy also intends to spend Rs 586.20 crore on technology and cloud infrastructure, Rs 929.50 crore on brand marketing and business promotion, and allocate funds for acquisitions and general corporate purposes.
Founded in 2014, Swiggy is currently valued at nearly $13 billion as of April 2023.
The Bengaluru-based company reported an annual revenue of $1.09 billion as of March 31, 2023, and employs over 4,700 people, according to startup data platform Tracxn.
Swiggy's IPO journey began in April, when the company confidentially submitted its offer documents to the Securities and Exchange Board of India (SEBI).
SEBI approved the documents in September, leading to the filing of updated draft papers.
During this confidential pre-filing route, SEBI reviewed Swiggy’s confidential Draft Red Herring Prospectus (DRHP) and provided feedback.
Swiggy then filed an updated version (UDRHP-I), which was open for public comments for 21 days, before filing a final version (UDRHP-II).
In April, Swiggy secured shareholder approval for the IPO, targeting Rs 10,414 crore through a combination of fresh equity issuance and an offer for sale.
This approval was passed during a special resolution at an extraordinary general meeting held on April 23.
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