Swiggy, backed by Prosus and SoftBank, is gearing up to launch its highly anticipated IPO in early November, targeting a valuation between $11.7 billion and $12.7 billion. The company is currently receiving bids from anchor investors, as it prepares for this significant market entry.
According to sources familiar with the matter, Swiggy’s IPO will include a fresh issue component of ₹3,750 crore and an offer for sale (OFS) of up to 182,286,265 equity shares. However, the fresh issue size may increase to ₹4,500 crore, in line with SEBI regulations allowing for a maximum 20% upsizing. Ultimately, the total IPO size could exceed ₹12,000 crore (approximately $1.42 billion).
Investment banks advising Swiggy on the IPO include Citi, JP Morgan, Kotak Mahindra Capital, Jefferies, ICICI Securities, Avendus Capital, and BofA Securities, with Cyril Amarchand Mangaldas serving as the company’s legal counsel.
On September 24, Swiggy received approval from the Securities and Exchange Board of India (SEBI) following its confidential filing of draft share sale documents. The confidential filing route, introduced by SEBI in November 2022, allows companies to keep sensitive information private until their IPO plans are finalized, minimizing the risk of competitive disadvantage.
As Swiggy prepares for its IPO, it faces competition from Zomato’s Blinkit, Zepto, and Tata-owned BigBasket, while Zomato itself is looking to raise funds through a Qualified Institutional Placement (QIP).
Key investors in Swiggy include Prosus (32%), SoftBank (8%), and Accel (6%), with other notable shareholders like Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority (QIA), and Singapore’s GIC.
This upcoming IPO marks a significant step for Swiggy in a competitive market, as it aims to capitalize on its growth trajectory.
Disclaimer: This report is for informational purposes only and does not constitute financial advice or a recommendation to invest. The details regarding Swiggy’s IPO, including its targeted valuation, size, and associated risks, are based on publicly available information and market speculation. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The market conditions and company performance may vary, and past performance is not indicative of future results.
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