Swiggy plans to file $1.4 billion IPO this weekend: Report
Swiggy, a leading food and grocery delivery platform in India, is set to file its draft red herring prospectus (DRHP) this weekend, as per Moneycontrol. This move comes as the Securities and Exchange Board of India (SEBI) is on the verge of approving its confidential filing. Following the DRHP submission, Swiggy's management will embark on investor roadshows across India, US, and Singapore in the coming weeks.
Swiggy's IPO: A highly anticipated event
Swiggy's public issue is among the most eagerly awaited this year, amid a surge of new-age economy IPOs capitalizing on a robust bull market. The company recently increased its IPO size to $1.4 billion due to escalating competition in the online grocery delivery sector. Here, its platform Instamart competes with Zomato-owned Blinkit, Zepto, and Tata-owned BigBasket.
Swiggy's position in India's food delivery market
Swiggy, along with Zomato, dominates over 90% of India's food delivery market. This market is projected to expand to ₹2 lakh crore by 2030. While Zomato went public last year, Swiggy is preparing to follow suit in the upcoming months. The company was valued at $10.7 billion during its last fundraising round in January 2022.
Swiggy's key investors and market capitalization
Key investors in Swiggy include Prosus (32%), SoftBank (8%), Accel (6%), Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority (QIA), and Singapore's GIC. Over the past few months, bankers have expressed confidence that Swiggy can list with a market capitalization/valuation of around $10-13 billion. The company plans to issue new shares worth ₹5,000 crore ($600 million), an increase of ₹1,250 crore or $150 million.
Swiggy's revised IPO size and future plans
Swiggy initially planned to raise $1.25 billion through its IPO, including ₹3,750 crore ($450 million) in fresh issue and up to ₹6,664 crore ($800 million) as part of the offer-for-sale (OFS). However, if the company's board approves a new proposal at its extraordinary general meeting (EGM) on October 3, the total IPO size will be around $1.4 billion with the additional $150 million coming via a fresh issue.
