Swiggy IPO: Food delivery platform opts for confidential filing route for public issue
Upstox
2 min read • Updated: May 6, 2024, 1:38 PM
Summary
Unlike a regular filing where the approval for an IPO is valid for 12 months after Sebi gives its observations on the DRHP, the approval in confidential filing is valid for a longer duration of 18 months. 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.
Food delivery giant Swiggy has reportedly taken the confidential filing route to submit its initial public offering (IPO) documents with markets regulator Securities and Exchange Board of India (Sebi).
According to Moneycontrol, Swiggy has already filed the confidential papers carrying key details about its business with the market regulator. These papers would not be released for the common public unlike the draft red herring prospectus (DRHP) which is made publicly available as soon as it is filed with Sebi.
The system of confidential filing was introduced by Sebi in November 2022 for businesses who do not want to release important information regarding their businesses before getting regulator’s approval for their public issues.
The DRHP is made public later only after the company gets approval from the regulator and decides the timing of the issue.
Also, unlike a regular filing where the approval for an IPO is valid for 12 months after Sebi gives its observations on the DRHP, the approval in confidential filing is valid for a longer duration of 18 months.
Before Swiggy, SoftBank-backed Oyo and Tata Play (formerly Tata Sky) had also opted for the confidential filing route for their IPOs.
The reports of confidential filing came immediately after Swiggy got approval from its shareholders for its ₹10,414-crore IPO.
According to reports, a special resolution was passed at the company’s extraordinary general meeting (EGM) on April 23, granting shareholder consent to the IPO.
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.
Swiggy had recently reported a $207-million loss for the nine-month period ended December 2023 on a revenue of $1.02 billion. Before that, the company had posted a net loss of $501 million for full fiscal 2022-23 on operating revenue of $992 million.