Swiggy IPO: Food Delivery Giant Sets Price Band Between ₹371 – ₹390

Swiggy, a leading player in the food and grocery delivery market, is gearing up for its initial public offering (IPO), targeting ₹11,300 crore. The IPO will include a fresh issue of shares worth ₹4,500 crore and an offer for sale (OFS) amounting to ₹6,800 crore.

The upcoming IPO is set to open for public subscription on November 6, with shares priced in the range of ₹371 to ₹390 each, as reported by PTI. The offer will close on November 8, while anchor investors will have the opportunity to bid on November 5.

Swiggy is one of the most highly valued new-age consumer brands entering the Indian capital market. Notable shareholders participating in the OFS include Accel India IV, Apoletto Asia, Alpha Wave Ventures, Coatue PE Asia, and Tencent Cloud Europe, among others.

Early investors such as Accel, Elevation Capital, and Norwest Ventures are expected to see returns of up to 35 times on the shares they are selling. Meanwhile, SoftBank continues to hold its investment in the company.

Use of IPO Proceeds

According to the IPO documents, approximately ₹137.41 crore from the fresh issue will be used to pay down debts for the subsidiary Scootsy. Additionally, ₹982.40 crore is earmarked for expanding Scootsy’s Dark Store network in the quick commerce sector.

Specific allocations include ₹559.10 crore for establishing new dark stores and ₹423.30 crore for lease or license payments. The company also plans to invest ₹586.20 crore in technology and cloud infrastructure, and ₹929.50 crore for brand marketing and business promotion. Other funds will be directed towards inorganic growth and general corporate purposes.

Swiggy’s Valuation and Financial Performance

Founded in 2014, Swiggy was valued at approximately USD 13 billion as of April 2023. The company reported annual revenue of USD 1.09 billion as of March 31, 2023, and employs over 4,700 people, according to Tracxn.

In September, the Securities and Exchange Board of India (Sebi) approved Swiggy’s confidential offer document, allowing for updated draft filings. The company initially submitted its offer document on April 30 through a confidential pre-filing route.

During this process, Sebi reviews the confidential Draft Red Herring Prospectus (DRHP) and provides feedback. After incorporating these comments, the company must submit an updated version for public comments, which leads to further updates based on the feedback received.

In April, sources indicated that Swiggy had obtained shareholder approval for an IPO aimed at raising ₹10,414 crore through new equity shares and an offer for sale. A special resolution was passed during an extraordinary general meeting on April 23.

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