IPO-bound Swiggy has reportedly gained shareholder approval to increase the size of its fresh issue in its initial public offering to INR 5,000 Cr, up from the earlier INR 3,750 Cr.
The͏͏ foodtech͏͏ giant͏͏ gained͏͏ approval͏͏ at͏͏ its͏͏ extraordinary͏͏ general͏͏ meeting͏͏ (EGM)͏͏ on͏͏ October͏͏ 3,͏͏ according͏͏ to͏͏ Moneycontrol.
The͏͏ Bengaluru-based͏͏ startup͏͏ had͏͏ previously͏͏ announced͏͏ its͏͏ plan͏͏ to͏͏ seek͏͏ shareholder͏͏ approval͏͏ for͏͏ raising͏͏ an͏͏ additional͏͏ INR͏͏ 1,250͏͏ Cr͏͏ through͏͏ the͏͏ fresh͏͏ issuance͏͏ of͏͏ shares.
Total͏͏ IPO Target͏͏ at͏͏ $1.4͏͏ Bn:
With͏͏ shareholder͏͏ consent͏͏ now͏͏ secured,͏͏ Swiggy͏͏ is͏͏ set͏͏ to͏͏ raise͏͏ a͏͏ total͏͏ of͏͏ $1.4͏͏ Bn͏͏ through͏͏ its͏͏ IPO,͏͏ up͏͏ from͏͏ the͏͏ previously͏͏ planned͏͏ $1.25͏͏ Bn,͏͏ at͏͏ a͏͏ likely͏͏ valuation͏͏ of͏͏ $15͏͏ Bn,͏͏ according͏͏ to͏͏ the͏͏ report.
Queries͏͏ directed͏͏ towards͏͏ Swiggy͏͏ went͏͏ unanswered
This͏͏ comes͏͏ days͏͏ after͏͏ the͏͏ company͏͏ filed͏͏ an͏͏ updated͏͏ draft͏͏ red͏͏ herring͏͏ prospectus͏͏ (DRHP)͏͏ with͏͏ market͏͏ regulator͏͏ SEBI͏͏ for͏͏ its͏͏ public͏͏ listing.
Continue͏͏ Exploring:͏͏ Swiggy files͏͏ updated͏͏ DRHP͏͏ with͏͏ SEBI͏͏ for͏͏ INR͏͏ 3,750͏͏ Cr͏͏ IPO
IPO to͏͏ Include͏͏ Fresh͏͏ Shares͏͏ and͏͏ Offer͏͏ for͏͏ Sale:
According͏͏ to͏͏ the͏͏ DRHP,͏͏ Swiggy͏͏ planned͏͏ to͏͏ raise͏͏ INR͏͏ 3,750͏͏ Cr͏͏ through͏͏ the͏͏ fresh͏͏ issuance͏͏ of͏͏ shares.͏͏ Additionally,͏͏ its͏͏ IPO͏͏ includes͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ component͏͏ of͏͏ 18.53͏͏ Cr͏͏ shares.
Ahead͏͏ of͏͏ its͏͏ much-anticipated͏͏ IPO,͏͏ US-based͏͏ asset͏͏ manager͏͏ Invesco͏͏ raised͏͏ Swiggy’s͏͏ valuation͏͏ to͏͏ $13.3͏͏ Bn,͏͏ reflecting͏͏ a͏͏ 25%͏͏ increase͏͏ from͏͏ the͏͏ last͏͏ fair͏͏ value͏͏ recorded͏͏ by͏͏ the͏͏ investor.
Elara͏͏ Capital͏͏ Sees͏͏ Lower͏͏ Valuation͏͏ Than͏͏ Zomato:
Recently,͏͏ brokerage͏͏ firm͏͏ Elara͏͏ Capital͏͏ stated͏͏ that͏͏ it͏͏ expects͏͏ Swiggy͏͏ to͏͏ achieve͏͏ a͏͏ lower͏͏ valuation͏͏ in͏͏ the͏͏ public͏͏ market͏͏ compared͏͏ to͏͏ Zomato,͏͏ as͏͏ it͏͏ continues͏͏ to͏͏ lag͏͏ behind͏͏ the͏͏ Deepinder͏͏ Goyal-led͏͏ startup͏͏ in͏͏ several͏͏ key͏͏ metrics,͏͏ including͏͏ revenue,͏͏ gross͏͏ order͏͏ volume,͏͏ and͏͏ order͏͏ count.
However,͏͏ investors͏͏ have͏͏ been͏͏ flocking͏͏ to͏͏ buy͏͏ unlisted͏͏ shares͏͏ of͏͏ Swiggy͏͏ ahead͏͏ of͏͏ its͏͏ IPO.
Continue͏͏ Exploring:͏͏ Swiggy attracts͏͏ celebrity͏͏ investors:͏͏ Rahul͏͏ Dravid,͏͏ Karan͏͏ Johar͏͏ &͏͏ others͏͏ invest͏͏ in͏͏ pre-IPO͏͏ round
According͏͏ to͏͏ Swiggy’s͏͏ DRHP,͏͏ its͏͏ consolidated͏͏ net͏͏ loss͏͏ increased͏͏ by͏͏ over͏͏ 8%͏͏ to͏͏ INR͏͏ 611͏͏ Cr͏͏ in͏͏ the͏͏ June͏͏ quarter͏͏ of͏͏ the͏͏ financial͏͏ year͏͏ 2024-25͏͏ (Q1͏͏ FY25),͏͏ up͏͏ from͏͏ INR͏͏ 564.08͏͏ Cr͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year,͏͏ due͏͏ to͏͏ a͏͏ rise͏͏ in͏͏ operating͏͏ costs.
However,͏͏ Swiggy’s͏͏ revenue͏͏ from͏͏ operations͏͏ surged͏͏ by͏͏ 35%͏͏ to͏͏ INR͏͏ 3,222.2͏͏ Cr͏͏ during͏͏ the͏͏ quarter͏͏ under͏͏ review,͏͏ up͏͏ from͏͏ INR͏͏ 2,389.8͏͏ Cr͏͏ in͏͏ Q1͏͏ FY24,͏͏ driven͏͏ by͏͏ robust͏͏ growth͏͏ in͏͏ its͏͏ food͏͏ delivery͏͏ and͏͏ quick͏͏ commerce͏͏ sectors.
