Swiggy IPO: Food delivery and quick commerce company Swiggy is ready to launch its IPO in the beginning of November. The company has set a valuation target in the range of $11.7 billion to $12.7 billion. Moneycontrol has come to know about this from people having knowledge of the matter. Giants like Prosus and SoftBank have invested in Swiggy.
“Swiggy is currently working with an IPO valuation in the range of $11.7 billion to $12.7 billion and bids have started coming in from anchor investors,” one of the people said. The firm plans to launch its IPO within the first 15 days in early November, a second person told Moneycontrol. The timeline may change later depending on market conditions.
What will be the size of Swiggy IPO?
According to Swiggy’s updated draft Red Herring Prospectus-I, its IPO will involve issuance of new shares worth Rs 3,750 crore and an offer for sale (OFS) of 182,286,265 equity shares. The issue of new shares or the primary issue could raise up to Rs 4,500 crore, according to a third person. The OFS component is also expected to change depending on valuations and investor exit strategies. In this way, an IPO of more than Rs 12,000 crore or $ 1.42 billion is going to come.
What is the stake of Prosus and Softbank in Swiggy?
Prosus has 32 percent stake in Swiggy, SoftBank has 8 percent and Excel has 6 percent stake. Apart from this, Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority (QIA), Singapore’s GIC and many others are also shareholders. Citi, JP Morgan, Kotak Mahindra Capital, Jefferies, ICICI Securities, Avendus Capital and BofA Securities are the investment banks advising on Swiggy IPO. Swiggy received capital market regulator SEBI’s approval for IPO on September 24.
