Swiggy, the country’s largest food delivery platform, is coming up with its initial public offering. According to the information, the size of the company’s IPO will be Rs 10,400 crore. According to sources, Swiggy has received approval from the market regulator for its proposed public issue of $1,250 million i.e. Rs 10,400 crore. The Bengaluru-based company had filed draft documents for the IPO with SEBI through the confidential filing route in April this year.
Both fresh capital and OFS are included.
Swiggy will now have to file an updated draft red herring prospectus (DRHP) with the market regulator. The public will be provided with a 21-day period to provide comments on the UDRHP before the IPO is launched. Both fresh equity and OFS will be included in the IPO. The value of the fresh equity is expected to be Rs 3,750 crore ($450 million) and the OFS component is expected to be Rs 6,664 crore ($800 million).
Who can sell shares?
Bankers say the size can be increased before the launch. Large investors like Prosus and SoftBank, Swiggy’s largest shareholder with a 33 per cent stake, are likely to sell part of their stake through OFS. Other major shareholders include Accel, Elevation Capital, Meituan, Tencent, Northwest Venture Partners, DST Global, Coatue, Invesco and GIC. Swiggy has not received any official statement on the matter.
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Zomato has delivered strong returns
In the first three quarters of fiscal 2024, Swiggy reported revenues of Rs 5,476 crore with losses of Rs 1,600 crore. Its main rival Zomato had generated revenues of Rs 12,114 crore for the year ended March 31, 2024. It remained profitable during the same period with a net profit of Rs 351 crore. Zomato had raised Rs 9,375 crore through its initial public offering in July 2021. The stock is up 192 per cent over the past year, compared to Nifty’s 32 per cent gain. Zomato’s issue price was Rs 76, which rose to Rs 291.70.
SEBI introduced the ‘pre-filing’ route in 2022, allowing companies to keep details of the initial filing confidential. This route provides more flexibility to companies in determining the size of the issue. Pending the filing of the updated DRHP, the number of new shares proposed can be adjusted up to 50 per cent.
