Leading consumer internet company Swiggy has announced its much-anticipated initial public offering (IPO) price range of Rs 371-390 per share, with bidding open from November 6 to November 8, 2024. Early investors Accel and Elevation Capital are poised to gain over 3300% on their initial investments, with key stakeholders set to sell shares under the offer for sale (OFS) route.
Swiggy, which began operations in 2014 and attracted major venture capital funding in 2015, has established itself as one of India’s leading food delivery and convenience platforms. The IPO will be conducted through a book-building route, offering an opportunity for early investors to partially exit with significant returns.
Accel and Elevation Capital’s Massive Returns
Accel, an early investor, is set to tender 10.5 million shares under the OFS, realizing an impressive return of 3391% on its investment. Accel’s acquisition cost per share was Rs 11.17, and with the expected sale price at the upper IPO range of Rs 390, the firm anticipates receiving Rs 412 crore from the sale.
Elevation Capital, which will tender 7.39 million shares, is expected to see a 3309% return on its investment, as its cost of acquisition per share stands at Rs 11.44. The venture capital firm is likely to gain Rs 288 crore through this sale. Both Accel and Elevation Capital were early backers of Swiggy, contributing significantly to the company’s growth trajectory.
Prosus to Earn Rs 4,254 Crore
Prosus, Swiggy’s largest shareholder with a 30.93% stake, is expected to realize a gain of 197%, as its acquisition cost per share was Rs 131.15. Prosus is set to tender 109 million shares, emerging as the highest earner among Swiggy’s investors, with an estimated Rs 4,254 crore from the sale.
Gains for Other Major Investors and Founders
Other key investors in Swiggy, including Norwest Venture Partners, Alpha Wave Ventures, and Tencent, are also poised to see substantial returns. Norwest is expected to achieve a 2531% gain, amounting to Rs 250 crore, while Alpha Wave Ventures anticipates a 118% gain. Swiggy co-founder and CEO Sriharsha Majety will tender 1.7 million shares, expected to bring in Rs 68 crore. Co-founders Rahul Jaimini and Nandan Reddy are likely to gain Rs 46 crore and Rs 68 crore, respectively.
The OFS for Swiggy’s IPO includes a total of 175.1 million shares being tendered by existing investors. None of the proceeds from this OFS will flow into Swiggy directly, as it is structured solely for the benefit of selling shareholders. However, Swiggy plans to raise Rs 4,499 crore through a fresh issue of shares as part of its growth and expansion strategy.
