Swiggy’s Mega IPO: Set to Raise Rs 5,000 Crore

Key Takeaways from Swiggy’s Upcoming IPO Plans:

Fresh Fundraising via IPO: Swiggy is set to raise Rs 5,000 crore ($602 million) through a fresh issue of shares as part of its anticipated IPO.
Offer for Sale (OFS) Plans: The company also aims to raise Rs 6,664 crore through an OFS, with board approval expected in early October.
Increased Fresh Issue Size: The fresh issue is now projected at Rs 5,000 crore, 1.3 times higher than the previously estimated Rs 3,750 crore.
Shareholder Approval Pending: Swiggy’s board has approved the fresh issue, but it awaits final approval from shareholders at an EGM on October 3.
Draft Filing with SEBI Imminent: The company is expected to file its draft red herring prospectus (DRHP) with SEBI soon.
Pre-IPO Investments: Swiggy received strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites, with a recent valuation of $14.5 billion by Baron Capital.
Financial Growth: Swiggy reported a 36% increase in revenue to Rs 11,247 crore in FY24 and reduced its losses by 44% to Rs 2,350 crore.
Expanding Quick Commerce: Swiggy’s Instamart segment contributed Rs 1,100 crore to its revenue, reflecting strategic investments of $700 million to stay competitive against Zepto and Blinkit.
Bengaluru’s IPO Surge: Swiggy’s IPO adds to Bengaluru’s growing presence in the IPO market, alongside companies like Digit Insurance, Ola Electric, and Ather Energy.

Swiggy upsizes IPO; plans to raise Rs 5,000 crore via fresh issue of shares Read more at: https://economictimes.indiatimes.com/tech/startups/swiggy-plans-to-raise-rs-5000-crore-in-upcoming-ipo-via-fresh-issue/articleshow/113214850.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Image Source - India IPO

Prosus-backed food delivery and quick commerce player Swiggy will raise Rs 5,000 crore ($602 million) through a fresh issue of shares as part of its impending Initial Public Offering (IPO). The company has also set a target to raise Rs 6,664 crore via an offer for sale (OFS. Swiggy is expected to seek approval for the OFS from its board in early October.

Board Approval for Fresh Issue

According to an internal document accessed by Entrackr, Swiggy's board has approved a special resolution to issue equity shares of up to Rs 5,000 crore. The plan still awaits the nod of the shareholders in an extraordinary general meeting scheduled on October 3.

The Swiggy IPO has been highly awaited since the firm filed the draft papers confidentially in April. According to sources, Swiggy has attained approval for raising Rs 10,400 crore from its shareholders - all in Rs 3,750 crore as a fresh issue and Rs 6,664 crore through an OFS. However, the fresh issue may be much bigger than that, as the recent board resolution hints at an increase of as high as 1.3 times to Rs 5,000 crore.

Draft Filing with SEBI Likely Soon

The Bengaluru-based company is likely to file its DRHP with the Securities and Exchange Board of India shortly. Though he tried to contact them, a comment from Swiggy did not arrive until the time of going to press.

Strategic Investments and Valuation

Ahead of its IPO, Swiggy has also garnered strategic investments led by Amitabh Bachchan's Family Office and Hindustan Composites. Recently, Swiggy was valued at $14.5 billion as it completed a round led by Baron Capital.

Financial Performance

Swiggy reported a strong financial performance on the back of revenue that jumped 36% YoY to Rs 11,247 crores in FY24. It has contracted losses by 44% to Rs. 2,350 crores. While the food delivery business contributed Rs 6,100 crore to its topline, the quick commerce segment-Instamart scaled $1.37 billion or Rs 1,100 crore in gross revenue for the same period.

Competition in Quick Commerce Space

Swiggy has actively been investing in its quick commerce business as it looks to give tough competition to rivals including Zepto and Zomato's Blinkit. The company invested $700 million in the segment in December 2021. Last month, Swiggy named a new chief executive and chief operating officer for Instamart.

Bengaluru's Growing IPO Scene

Bengaluru is fast catching up with Mumbai in the startup IPO space, with at least three city-based firms-Digit Insurance and Ola Electric among them- already making their stock market debut this year. Along with Swiggy, another Bengaluru-based firm Ather Energy has also filed its draft IPO papers. Hero MotoCorp, the largest shareholder of Ather, though, will not sell its shares through OFS.

With inputs from Entrackr and Business Outreach
Image Source: Multiple agencies