Swiggy IPO: Here’s how much co-founders of food delivery app are expected to gain from public issue

3 min read | Updated on October 31, 2024, 15:23 IST

SUMMARY

Swiggy IPO: Swiggy's co-founders are likely to gain nearly ₹180 crore from the initial public offering. The individual selling shareholders in the issue include co-founders Lakshmi Nandan Reddy Obul, Rahul Jaimini, Sriharsha Majety, and early-stage investor Samina Hamied.

Rahul Jaimini, co-founder and former CTO of Swiggy, is likely to gain ₹45 crore via OFS.

Swiggy IPO: The much-awaited public issue of food delivery app Swiggy is set to open on Wednesday, November 6. The food delivery giant aims to raise ₹11,327.43 crore via its IPO.

The mainboard issue consists of a fresh issuance of 11.54 crore shares, aggregating to ₹4,499 crore, along with an offer-for-sale (OFS) of 17.51 crore shares, amounting to ₹6,828.43 crore. The IPO price band has been fixed at ₹371 to ₹390 per share.

The co-founders of the company are likely to gain nearly ₹180 crore from the public issue. The individual selling shareholders in the issue include co-founders of the company Lakshmi Nandan Reddy Obul, Rahul Jaimini, Sriharsha Majety and early stage investor Samina Hamied.

The CEO of the company Sriharsha Majety and whole-time Director Lakshmi Nandan Reddy Obul are likely to gain ₹68 crore each after the IPO. Majety and Obul have pledged up to 0.78% of their current shareholding for the food delivery platform’s public issue.

Rahul Jaimini, co-founder and former Chief Technology Officer of Swiggy, is likely to gain ₹45 crore, as he is set to offload 0.52% stake via the public issue. Another co-founder of Swiggy, Phani Kishan Addepalli, will not be selling any of his shares in the company. Addepalli also serves as the Chief Growth Officer of the company.

Before the mainboard issue opens for subscription, the co-founders of Swiggy, Majety and Obul, hold 5.36% and 1.175% stake in the company, respectively, as per its Red Herring Prospectus (RHP). On the other hand the former CTO of the company Jaimini holds 1.14% stake and Addepalli holds 0.23% stake in the company.

Swiggy IPO: How it stacks up against rival Zomato in food delivery and quick commerce

Cipla’s former executive vice-president Samina Hamied is also among the individual selling shareholders in the issue. Hamied holds 0.02% stake in the company ahead of the issue and will be diluting her entire stake in the public issue. Hamied is likely to gain nearly ₹1 crore after the company’s shares are listed on the exchanges.

Institutional investors of the company such as Accel India IV (Mauritius) Limited, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V BV, Elevation Capital V Limited, Inspired Elite Investments Limited, MIH India Food Holdings BV, Norwest Venture Partners VIIA-Mauritius and Tencent Cloud Europe BV will also offload a portion of their stake in the public issue.

Among the institutional investors, early stage investors such as Accel India, Apoletto Asia, Northwest Venture Partners and Elevation Capital are likely to gain up to 35 times per share during the public issue. Accel India and Elevation Capital acquired shares of Swiggy at ₹11.17 and ₹11.44 per share.

Swiggy IPO: Offer size to key competitors, all you need to know

Ahead of the public issue, Bollywood celebrities like Karan Johar, Madhuri Dixit Nene, Amitabh Bachchan (through the family office) and cricketers Rahul Dravid and Zaheer Khan also bought shares of Swiggy from existing shareholders, according to reports. Cricketer Sachin Tendulkar and his wife Anjali Tendulkar also invested in the company and were allotted bonus compulsory convertible preference shares (CCPS) in February 2022.

At the moment the investments and stakes held by Dixit, Johar and other recent individual investors are not known.

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