Swiggy to launch IPO next month, eyes $12.7 billion valuation
Swiggy is gearing up for its initial public offering (IPO) next month, and is eyeing a valuation between $11.7-12.7 billion, insiders told Moneycontrol. "Swiggy is currently working with an IPO valuation in the range of $11.7 billion to $12.7 billion and bids have started coming in from anchor investors," said one source familiar with the matter. The IPO will be launched in the first two weeks of November, although the timeline may change depending on market conditions.
IPO size could exceed $1.42 billion
The updated draft red herring prospectus - I of Swiggy, shows that the IPO comprises a fresh issue component of ₹3,750 crore, and an offer for sale (OFS) of up to 182,286,265 equity shares. According to another insider, the main component is likely to be raised to ₹4,500 crore. The OFS component is also likely to change. This could potentially take the combined IPO size beyond ₹12,000 crore or $1.42 billion.
Market competition and key investors
Swiggy and its platform Instamart go up against Zomato-owned Blinkit, Zepto, and BigBasket. As Swiggy prepares for its IPO, rival Zomato is looking to raise funds via the QIP route. Key investors in Swiggy include Prosus (32%), SoftBank (8%), and Accel (6%). Other shareholders include DST Global, Norwest Venture Partners, Elevation Capital, Tencent Holdings Ltd, Qatar Investment Authority (QIA), and Singapore's GIC Private Limited.
SEBI approval and confidential filing route
Swiggy got the nod from Securities and Exchange Board of India (SEBI) on September 24, after it filed draft share sale documents confidentially. This method enables the issuer company to keep its offer document private by the pre-filing route, until it finalizes its IPO plan. The IPO's book-running lead managers include Kotak Mahindra Capital Company, Citigroup Global Markets India Private Ltd Jefferies India Private Ltd, and Avendus Capital. Link Intime India Private Ltd is the registrar to the issue.
