Swiggy IPO: Opening Date, Price, Size, All You Need to Know
Swiggy, a major player in the food and grocery delivery sector, is set to launch its Initial Public Offering (IPO) on November 6, 2024. The company aims to achieve a valuation of $11.3 billion, approximately Rs 95,000 crore, for this long-anticipated financial event.
According to reports, Swiggy’s IPO will feature a primary component escalated to around Rs 4500 crore, with adjustments made to the offer for sale component based on investor interest. The company has recently filed updated draft documents with the Securities and Exchange Board of India (SEBI) for its Rs 10,000-crore IPO, following the approval of its confidential offer document.
Swiggy IPO Size
The Swiggy IPO will include a fresh issue of equity shares amounting to Rs 3,750 crore and an offer-for-sale (OFS) of 18.52 crore equity shares by existing shareholders. Notable stakeholders involved in the OFS route include Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, and Tencent Cloud Europe BV, among others.
Sources indicate that Swiggy plans to raise up to Rs 3,750 crore through new equity shares, complemented by an OFS component of nearly Rs 6,664 crore.
Swiggy Pre-IPO Plans
Swiggy also intends to secure funds in a pre-IPO round. Should this occur, the size of the new issue might be reduced correspondingly. The company’s offer document was initially filed on April 30 through a confidential pre-filing route. This process allows SEBI to review the confidential DRHP, offering feedback which Swiggy is required to incorporate before releasing updated drafts for public review and comments.
Swiggy IPO Opening Date
As announced, Swiggy’s IPO will commence on November 6, concluding by November 8. The anchor book portion is scheduled to open on November 5.
Swiggy IPO Price
While the exact price band for the IPO is yet to be finalized, announcements are expected in the coming week.
Investment Plans from IPO Proceeds
Swiggy’s IPO documents outline a strategic plan for utilizing proceeds from the fresh issue. Approximately Rs 137.41 crore will be allocated toward the debt payment of its subsidiary, Scootsy. Additionally, significant investment is slated for expanding the Dark Store network in the Quick Commerce segment, with Rs 982.40 crore dedicated to this initiative, including Rs 559.10 crore for setting up Dark Stores and Rs 423.30 crore for lease or license payments.
The company plans to invest Rs 586.20 crore in technology and cloud infrastructure, alongside Rs 929.50 crore earmarked for brand marketing and business promotion. Additional funds will support inorganic growth and general corporate purposes.
Founded in 2014, Swiggy boasts a valuation nearing USD 13 billion as of April and recorded an annual revenue of USD 1.09 billion as of March 31, 2023. The company’s workforce exceeds 4,700 employees, reflecting its substantial growth since inception.
In April, Swiggy had reportedly received shareholder approval for the IPO to raise Rs 10,414 crore through the issuance of fresh equity shares and an offer for sale. This decision was recorded through a special resolution during an extraordinary general meeting held on April 23.
With the upcoming IPO, Swiggy’s market presence is poised to strengthen, offering a promising opportunity for investors to engage with one of India’s leading delivery service platforms.
