Swiggy investors sell stake via secondary transactions ahead of planned IPO: Report

The shares are being offloaded in a price range of ₹300-₹350, and at a valuation of $9.3 billion, Moneycontrol reported on Tuesday, July 9, citing persons privy to the development. This is around 13% lower as compared to the valuation of $10.7 billion at which Swiggy raised funds in 2022.

The investors selling the shares through the secondary transactions include venture capital firms Accel and Elevation Capital, and global tech investor Prosus, the report said.

Prosus could be reducing its shareholding in Swiggy as it currently holds 33% stake, and needs to scale it down to 25% to avoid being listed as a promoter entity when the company files for the IPO, the report added.

Asset managers like 360 One, along with a few high net-worth individuals (HNIs) are among those who are buying the shares, the publication learnt from sources.

The development could not be independently verified by Upstox. Swiggy, along with the buying and selling entities mentioned in the report, did not issue a statement so far in response to the news.

$1.2-billion IPO on cards

Reports in April said that Swiggy has secured approval from its shareholders for its $1.2-billion (approximately ₹10,414-crore) IPO.

Citing Swiggy’s regulatory filing with the Registrar of Companies (RoC), the Economic Times had reported that a special resolution was passed at the company’s extraordinary general meeting (EGM) on April 23, granting shareholder's consent for the planned IPO.

“The consent and approval of the shareholders of the company be and is hereby according to create, issue, offer, allot and/or transfer of its equity shares up to an aggregate of ₹37,501 million by way of a fresh issue of equity shares and an offer for sale of such number of equity shares up to an aggregate amount of ₹66,640 million by certain existing shareholders,” the filing reportedly stated.

Swiggy IPO would reportedly be a mix of fresh issuance of shares worth ₹3,750 crore and an offer-for-sale (OFS) of shares worth ₹6,664 crore.

Swiggy might also be looking to raise ₹750 crore from anchor investors in a pre-IPO round.

The Bengaluru-based company had recently reported a $207-million loss and a revenue of $1.02 billion for the nine-month period ended December 2023. Before that, the company had posted a net loss of $501 million and an operating revenue of $992 million for full fiscal year 2022-23