Swiggy's ₹11,300 cr IPO to open on Nov 6; price from ₹371 to ₹390

Food and grocery delivery giant Swiggy is set to raise ₹11,300 crore through its initial public offering (IPO), which will open for public subscription on November 6. The price band of the upcoming IPO will be priced in the range of ₹371 to ₹390 each.

The IPO will close on November 8, with a single-day bidding opportunity for anchor investors available on November 5.

Fresh issue and OFS

Swiggy is among the most highly valued new-age consumer brands entering the Indian capital market. The ₹11,300 crore IPO consists of a fresh issue of shares worth ₹4,500 crore and an offer for sale (OFS) amounting to ₹6,800 crore.

Shareholders participating in the OFS include 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.

Early investors like Accel, Elevation Capital, and Norwest Ventures are set to achieve returns of up to 35 times on the shares they are selling, while SoftBank remains a continuing investor.

According to IPO documents, ₹137.41 crore from the fresh issue will be used to pay off debts for the subsidiary Scootsy. Additionally, ₹982.40 crore will be invested in expanding Scootsy’s Dark Store network in the quick commerce sector, with ₹559.10 crore earmarked for establishing dark stores and ₹423.30 crore for lease or license payments.

The company also plans to allocate ₹586.20 crore for technology and cloud infrastructure, ₹929.50 crore for brand marketing and business promotion, and funds will be directed towards inorganic growth and general corporate purposes.

Swiggy's valued at $13 billion

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

In September, SEBI approved Swiggy's confidential offer document, leading to the filing of updated draft papers. The company initially submitted its offer document on April 30 through the confidential pre-filing route.

During the confidential filing process, SEBI  reviews the confidential Draft Red Herring Prospectus (DRHP) and provides feedback. The company must then file an updated version (UDRHP-I) after incorporating the regulator's comments. This UDRHP-I is open for public comments for 21 days, and the company must make further updates (UDRHP-II) based on these comments.

In April, Swiggy obtained shareholder approval for an IPO aimed at raising ₹10,414 crore through the issuance of fresh equity shares and an offer for sale. A special resolution was passed at an extraordinary general meeting on April 23.

(By arrangement with livemint.com)