Swiggy Set to Launch IPO on November 6, 2024, with Price Band of INR 371 to INR 390 per Share Swiggy has established a price band of INR 371 to INR 390 per equity share, with bids to be made for a minimum of 38 equity shares and in multiples of 38 thereafter.
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Swiggy, India's leading online food delivery and services platform, has announced its much-anticipated initial public offering (IPO) to open on Wednesday, November 6, 2024. The IPO bidding will close on Friday, November 8, 2024, with the Anchor Investor Bidding Date set for Tuesday, November 5.
This IPO is expected to be a major highlight in India's financial markets as Swiggy seeks to further capitalise on its robust growth and deepen its market presence.
Swiggy has established a price band of INR 371 to INR 390 per equity share, with bids to be made for a minimum of 38 equity shares and in multiples of 38 thereafter.
The offering comprises a fresh issue worth INR 4,499 crore and an offer for sale (OFS) of up to 175,087,863 equity shares by its existing shareholders. The OFS component, valued at INR 6,828 crore based on the upper price band, increases the total IPO size to approximately INR 11,327.43 crore, bringing the anticipated market capitalization of Swiggy to around INR 87,299 crore.
In a strategic adjustment, Swiggy has increased its fresh issue component from INR 3,750 crore while reducing the OFS portion from an earlier 18.5 crore shares. This adjustment is aimed at infusing more direct capital into the company to support its future growth initiatives.
Prominent global and domestic investors form the selling shareholders in this IPO. Key participants include Accel India, Apoletto Asia, Alpha Wave Ventures, Coatue PE Asia, DST EuroAsia, Elevation Capital, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners, and Tencent Cloud Europe.
Prosus-owned MIH India Food Holdings is the largest shareholder, holding a 30.93% stake, while SoftBank's SVF II SONGBIRD (DE) LLC holds a 7.75% share. Additionally, Accel India owns 4.71%, and Tencent Cloud holds 3.64%.
Swiggy's founders and top executives, Sriharsha Majety (Managing Director & Group CEO) and Lakshmi Nandan Reddy Obul (Wholetime Director – Head of Innovation), are also significant stakeholders, holding 5.36% and 1.75%, respectively.
The company has outlined several key areas for deploying the funds from the fresh issue. Approximately INR 1,343.5 crore will be allocated to Swiggy's subsidiary Scootsy for business expansion, while INR 703.4 crore will be invested in technological and cloud infrastructure improvements to enhance its service offerings.
Additionally, Swiggy has earmarked INR 1,115.3 crore for brand marketing and business promotion, with the remaining proceeds intended for inorganic growth opportunities and general corporate purposes.
Swiggy's recent financial performance highlights its improved operating metrics. The company reduced its net loss to INR 2,350.2 crore in the fiscal year 2024, a notable decrease from INR 4,179.3 crore in the previous year, driven by a 36% increase in revenue to INR 11,247.4 crore, up from INR 8,264.6 crore.
For the quarter ending June 2024, Swiggy reported a revenue surge of 35% year-on-year to INR 3,222.2 crore, although its loss for the quarter widened to INR 611 crore compared to INR 564 crore in the same period of the prior year.
The equity shares from Swiggy's IPO will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The IPO will be led by a consortium of respected financial institutions, including Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities India, and ICICI Securities, who are the book-running lead managers for the offer.
