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The much-awaited mega IPO of Swiggy Ltd. is expected to be priced at ₹390 per share, at the upper end of the range, according to a report by Moneycontrol citing Bloomberg. The price band has been set between ₹371 and 390 per share.
The food delivery company is likely to open its initial public offering between November 6 to 8.
The report said it aims to raise up to $1.35 billion (around ₹11,700 crore) in this much-anticipated listing. The company received SEBI approval for its IPO in September.
Swiggy, backed by investors such as Prosus, SoftBank, and Accel and valued at $9.3 billion as of August 2023, submitted its offer document on April 30 this year using the confidential pre-filing route.
This means that the IPO details, business model and financials were kept private before SEBI approval.
The company submitted the initial version of its updated draft red herring prospectus (RHP) in September.
A revised version will be submitted to the Registrar of Companies and the exchanges before the final RHP is filed.
As per another report published over the weekend, Swiggy's IPO features an increased primary component of around ₹4,500 crore.
Additionally, adjustments have been made to the offer for sale (OFS) to align with investor interest and exit strategies.
The draft RHP indicated that Swiggy initially planned a fresh issue component of ₹3,750 crore, along with an OFS of up to 182.3 million equity shares.
The company has proposed to utilise the net proceeds from the IPO for investment in its subsidiary, Scootsy.
Further, the IPO fund will be used as an investment to expand its dark store network for quick commerce. Investment in technology and cloud infrastructure will also be done.
If Swiggy’s IPO is successful, it will be placed among India’s largest IPOs, standing beside Hyundai Motor’s recent IPO earlier this month.
However, it is worth noting that recent IPOs from major players like Hyundai, Paytm, and LIC have faced a tepid market debut.
Founded in 2014, Swiggy is headquartered in Bangalore and operates in over 580 cities.
It has over 200,000 restaurant partners across India and competes directly with Zomato.
Zomato launched its IPO in July 2021 with an issue size of ₹9,375 crore and was oversubscribed more than 35 times.
Citi, JP Morgan, Kotak Mahindra Capital, Jefferies, ICICI Securities, Avendus Capital, and Bofa Securities are managing the Swiggy IPO. Cyril Amarchand Mangaldas is providing legal counsel for the IPO.
If The company’s shares have surged by more than 135% in the last year.