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  5. Swiggy to launch IPO in November, say reports; firm likely to raise ₹11,000 crore

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Swiggy to launch IPO in November, say reports; firm likely to raise ₹11,000 crore

Upstox
By Upstox News Desk

3 min read | Updated on October 03, 2024, 19:51 IST

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SUMMARY

Swiggy, which is backed by investors such as Prosus, SoftBank, and Accel and valued at $9.3 billion as of August 2023, submitted its offer document on April 30 this year using the confidential pre-filing route, meaning details have been kept under wraps for now.

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ZOMATO
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Softbank-backed Swiggy to file IPO draft papers this week to raise $1 billion: Report

Founded in 2014, Swiggy competes with publicly-listed Zomato in food delivery and quick commerce businesses.

Swiggy IPO: Swiggy, the online food ordering and delivery company, has, as per reports, received the approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) in November. Founded in 2014, Swiggy is headquartered in Bangalore and operates in more than 580 cities. 

The company, which is backed by investors such as Prosus, SoftBank, and Accel and valued at $9.3 billion as of August 2023, submitted its offer document on April 30 this year using the confidential pre-filing route, meaning details have been kept under wraps for now.

However, reports suggest Swiggy is looking to raise ₹11,000 crore with a fresh issue worth ₹5,000 crore, Business Standard reported. 
SEBI introduced the concept of confidential filings in November 2022. Common in US markets, under this route, the issuer company is allowed to keep its offer document private by the pre-filing route until it firms up its IPO plan. The direct-to-home platform, Tata Play (formerly Tata Sky), was the first firm to file confidential papers with SEBI for an IPO. It later dropped its listing plans, as per a report by Moneycontrol.
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Before the IPO hits the market, Swiggy must place its updated draft red herring prospectus (UDRHP) before the public for at least 21 days. During this window, the public is allowed to provide feedback on the offer document, and after that, the firm can proceed with its IPO.

Swiggy IPO: Huge rush for a share of pie

As per reports, several high-profile people have bought stakes in Swiggy in the run-up to its public issue. In August, The Economic Times reported that the family office of Bollywood superstar Amitabh Bachchan has picked up a small stake in Swiggy. Motilal Oswal Financial Services chairman Raamdeo Agrawal also acquired a stake in Swiggy, the report added. 

A week ago, Modern Insulators announced that it had brought 1,38,800 shares, representing a 0.007% stake in Swiggy at ₹360 per share. The transaction value stands at ₹4.99 crore.

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The company, which has a market valuation of ₹710 crore, has brought the equity as a "long-term investment." Besides investment, Modern Insulators' promoters do not have any interest in Swiggy Ltd, the exchange filing said.

Further, actor Madhuri Dixit and Innov8 founder Ritesh Malik have invested in Swiggy, according to a report by Moneycontrol. The duo purchased shares worth ₹1.5 crore each from the secondary market.

If things go as planned, Swiggy will become the second food delivery firm to list on the stock exchanges, following Zomato. 

This article was first published on September 25, 2024.
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Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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