Swiggy IPO: Public issue expected by year-end, here’s what we know so far

Swiggy has changed its name from a private limited company to a public limited firm which has fuelled speculations that the food aggregator app is getting ready for the launch of its IPO.

According to documents filed with the Registrar of Companies, the name has been changed to Swiggy Limited from Swiggy Private Limited. It is a usual practice for companies to change incorporation to a public limited company ahead of the launch of their initial public offering (IPO).

The holding company of Swiggy earlier in February had changed its name from Bundl Technologies Pvt Ltd to Swiggy Pvt Ltd.

While the company has kept a tight lid on its IPO plans, market reports suggest that the food aggregator which competes with listed rival Zomato in the Indian market, the Swiggy IPO is likely to be launched by the end of the year.

Swiggy IPO issue size

Market reports suggest that the Swiggy IPO would be of the size of $1 billion (around ₹8,300 crore at the current exchange rate). Swiggy is expected to file the draft red herring prospectus (DRHP) with the capital market regulator Sebi in the next few months.

Swiggy IPO date and price band

The details about Swiggy IPO price and Swiggy IPO launch date will be known after the company files the DRHP with Sebi. The DRHP will contain information about the number of shares offered through fresh issue or any offer for sale (OFS) component. The Swiggy IPO launch date is also expected to be announced later in the year.

Swiggy’s rival Zomato had hit the capital market in 2021 with a ₹9,375 crore IPO comprising a fresh issue worth ₹9,000 crore and an OFS of ₹375 crore. Zomato fixed the price band at ₹72 to ₹76 per share.

Invesco valuation upgrade booster for Swiggy

Swiggy’s IPO plans have received a shot in the arm with asset management company Invesco raising the company’s valuation. Invesco has upgraded Swiggy’s valuation to $12.7 billion against its previous fundraise in 2022, according to filings by the company with the US Securities and Exchange Commission.

Swiggy was valued at $10.7 billion in January 2022 following its fundraise of $700 million from a host of investors. Its valuation was downgraded to $7.8 billion later that year. But in 2023, Swiggy saw a valuation upgrade to USD 8.3 billion.

Focus on improving financial numbers ahead of IPO

Swiggy is reportedly working on improving its financial parameters ahead of the launch of the IPO. Reports suggested that the company is taking cost cutting measures to reduce the cash burn. It is also downsizing positions in departments such as corporate and call centres. Swiggy appointed Suparna Mitra, the chief executive of Titan’s watches and wearables division, as an independent director, last week.

Swiggy reported an operating revenue of $992 million in 2023 fiscal and losses of $501 million. Its revenue stood at $1.02 billion in nine months ending December 2023 while losses stood at around $207-million in the period.

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