The Initial Public Offering (IPO) of Swiggy is opening for subscription on November 6 and is scheduled to close on November 8, 2024. The estimated Size of the issue along with the offer for sale is expected between INR 11,700-11,800 Cr.
Swiggy’s primary component upsizes at INR 4,500 Cr
As reported by Moneycontrol, the cut-off date for bidding by anchor investors will be November 5. The report also stated that the firm is looking for a value of $11.3 Bn which is higher than the previous private valuation of $10.7 Bn.
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“At the top end of the price band, Swiggy is targeting an IPO valuation of around $11.3 Bn. The primary component of the issue has been upsized to around INR 4,500 Cr and the offer for sale component has also been tweaked depending on investor participation,” a source said.
Notably, Swiggy initially aimed for a $15 Bn IPO valuation. However, a recent report mentioned the company planned to lower the target to $12.5-13.5 Bn due to the recent sharp fall in the Indian stock market.
Meanwhile, the market has sharply declined for much of October. Sensex and Nifty 50 fell about 8% after hitting all-time highs last month. Swiggy’s competitor, Zomato, currently has a market cap of over $26 Bn.
Swiggy’s valuation $2 Bn less than investor value
It’s worth mentioning that the target valuation is about $2 Bn less than what Swiggy’s investor Invesco recently valued it at. Earlier this month, Invesco increased Swiggy’s valuation by 25% to $13.3 Bn. Swiggy also got approval from its shareholders to increase the fresh issue size to INR 5,000 Cr from the initial INR 3,750 Cr.
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Furthermore, Swiggy’s updated DRHP shows its public issue will include a fresh issuance of shares worth INR 3,750 Cr and an OFS of 18.53 Cr equity shares. The company has been introducing new offerings and services ahead of its IPO.
Meanwhile, Swiggy is testing a 10-minute medicine delivery service in Bengaluru. It has also launched an international login feature for NRIs to order food and groceries in India. Additionally, Swiggy is piloting a concierge service for high-end customers.
Financially, the company’s net loss increased by 8% year-on-year (YoY) to INR 611 Cr in the June 2024 quarter. Its operating revenue grew 35% YoY to INR 3,222.2 Cr.