drink The popular food and grocery delivery platform, is set to make a significant entry into the public market with an initial public offering ( IPO ) valued at approximately $11.3 billion. The long-awaited initial public offering is scheduled for public subscription between November 6 and 8, with the anchor book portion opening a day earlier on November 5, according to sources familiar with the matter.
The IPO will have an expanded lead component of around Rs 4,500 crore, while the total offering size is expected to range between Rs 11,700 crore and Rs 11,800 crore. Swiggy, backed by major investors such as Prosus, SoftBank and Accel, aims to improve retail participation by pricing the IPO at the lower end of the valuations discussed earlier, which were between $11 billion and $12.5 billion.
In its updated draft red herring prospectus, Swiggy outlined a fresh issue component of Rs 3,750 crore along with an offer for sale (OFS) of up to 182.3 million shares. The participation of prominent domestic and foreign investors, including BlackRock, the Canada Pension Plan Investment Board (CPPIB) and SBI Mutual Fund, has been confirmed, indicating strong interest in the offering.
Swiggy’s competitive landscape includes rivals like Zomato which launched its own IPO in July 2021. Zomato shares rose 136.68 percent last year, raising high expectations for Swiggy’s debut. As Swiggy prepares for its IPO, Zomato is simultaneously seeking funds through a Qualified Institutional Placement (QIP).
Swiggy’s latest private funding round in January 2022 valued the company at $10.7 billion, following a significant $700 million investment led by Invesco. The current IPO reflects a gradual increase in valuation, strategically positioning the company in the growing food delivery market, which also includes competitors such as flashes , Zepto and BigBasket.
Prosus owns a significant 31 per cent stake in Swiggy and is expected to recoup a substantial part of its investment through the sale of shares in the OFS component. Other early investors, including Elevation Capital and Norwest, are also willing to sell some of their stakes.
Swiggy received approval from the Securities and Exchange Board of India ( SEBI ) in September, after initially filing confidentially for its initial public offering. This strategy, introduced by SEBI in November 2022, allows companies to keep confidential information private until they finalize their IPO plans, thereby reducing competitive risks.
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