Food and grocery delivery giant Swiggy is set to launch its much-anticipated initial public offering (IPO) between November 6 and 8, according to recent reports. The company has set the price band between Rs 371 and Rs 390 per share, with a goal of raising up to $1.35 billion (approximately Rs 11,700 crore) through the offering. Swiggy, which secured approval from SEBI in September after filing documents on April 30 via the confidential pre-filing route, recently reduced its IPO valuation target to $11.3 billion, a 25 percent decrease from its initial goal of $15 billion.
The IPO structure will include a primary component of around Rs 4,500 crore. Additionally, an offer-for-sale (OFS) component will be adjusted based on investor demand. According to Swiggy’s draft red herring prospectus (UDRHP), the IPO originally included a fresh issue of shares valued at Rs 3,750 crore and an OFS of up to 182.3 million equity shares.
If Swiggy’s IPO is successful, it will join the ranks of India’s largest IPOs, following in the footsteps of Hyundai Motor India, which raised a record-breaking Rs 27,856 crore ($3.3 billion) earlier this month. However, recent IPOs from other industry giants, including Hyundai, Paytm, and LIC, have faced initial trading challenges, leading some investors to approach Swiggy’s IPO with caution.
Swiggy, founded in 2014, has grown to partner with over 200,000 restaurants across India. Along with its quick-commerce platform, Instamart, Swiggy competes with companies like Zomato, Blinkit, Zepto, and BigBasket. Among Swiggy’s key investors are Prosus (32 percent), Softbank (8 percent), and Accel (6 percent), alongside stakeholders such as Elevation Capital, DST Global, Tencent, Qatar Investment Authority (QIA), and GIC Singapore.
In July 2021, Zomato’s IPO, with an issue size of Rs 9,375 crore, was oversubscribed more than 35 times, highlighting investor interest in food and grocery delivery companies. Swiggy’s upcoming IPO is expected to test investor appetite for the industry once again.
