After much anticipation, Swiggy filed its red herring prospectus (RHP) late on Monday, October 28. According to the IPO papers, the public issue will open for subscription from November 6 to November 8, with anchor investors bidding on November 5.
Swiggy reduces OFS to 17.5 Cr equity shares
According to the RHP, Swiggy has raised the fresh issue size to INR 4,499 Cr from INR 3,750 Cr in the updated DRHP. However, this is lower than the INR 5,000 Cr approved by shareholders recently.
Continue Exploring: Swiggy sets IPO price band at INR 371-390, valuing company at $11.3 Bn
Notably, the company has reduced its offer for sale (OFS) to up to 17.5 Cr equity shares from 18.53 Cr in the updated DRHP filed in September. This is due to Naspers’ subsidiary MIH India Food Holdings selling 10.9 Cr shares now, instead of 11.82 Cr as mentioned in the updated DRHP.
Meanwhile, Swiggy hasn’t disclosed its IPO price band yet, but reports suggest it will be between INR 371 and INR 390. At the upper end, the IPO size would exceed INR 11,300 Cr ($1.3 Bn). Swiggy will likely finalise the share allotment by November 11, credit shares to successful bidders’ demat accounts by November 12, and list the shares on BSE and NSE on November 13.
Swiggy uses INR 1,178.7 cr to expand dark stores
Regarded as the second biggest IPO of the year, the public issue will see investors like Accel, Apoletto Asia, Alpha Wave Ventures, Coatue, Elevation Capital, Norwest Venture Partners, and Tencent selling shares through the OFS component. Cofounders Sriharsha Majety (managing director and group CEO), Lakshmi Nandan Reddy (whole-time director, head of innovation), and Rahul Jamini will also sell some of their shares.
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Furthermore, Swiggy has saved 75% of the IPO for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. The company has also set aside 7.5 Lakh shares for its employees. According to the RHP, Swiggy will use INR 1,178.7 Cr to expand its dark store network, INR 1,115.3 Cr for brand marketing and business promotion, and INR 164.8 Cr for its logistics subsidiary, Scootsy.
Some capital will also be used for acquisitions and general corporate purposes. Financially, the company’s net loss increased by 8% YoY to INR 611 Cr in Q1 FY25. Operating revenue grew 35% YoY to INR 3,222.2 Cr in the same quarter.
Earlier, Swiggy’s net loss was INR 2,350 Cr in FY24, down from INR 4,179.3 Cr in FY23. Revenue from operations increased by 36% to INR 11,247.3 Cr in FY24 from INR 8,264.5 Cr in the previous year.
