SUMMARY
- Swiggy has received the nod from SEBI for its IPO.
- Following this approval, the company is set to submit two revised DRHPs.
- Swiggy’s IPO is expected to launch in November.
Foodtech major Swiggy has received the nod from the Securities and Exchanges Board of India (SEBI) for its initial public offering (IPO).
Following this approval, the company is set to submit two revised draft red herring prospectus (DRHPs) – one addressing the feedback received from SEBI on its confidential DRHP, and another seeking feedback from the public, as reported by Moneycontrol.
The report further indicates that Swiggy is in the process of filing its red herring prospectus (RHP) and that the precise amount of the public offering has not yet been disclosed.
A source has disclosed that, although there has been no definitive decision, Swiggy’s IPO is expected to launch in November. Initial discussions with key investors are underway.
While the exact size of the IPO has not been made public, it is anticipated that Swiggy aims to raise approximately $1.4 billion through this offering. Recent reports suggest that the company is seeking approval from shareholders to increase the size of the public offering from the previously announced Rs 3,750 crore to Rs 5,000 crore. Additionally, the offering will include an offer for sale component of Rs 6,664 crore.
Swiggy submitted its IPO documents to SEBI through the confidential route in April of this year. Since then, the company has attracted significant interest from notable investors, including actors Amitabh Bachchan and Madhuri Dixit, as well as companies such as Modern Insulators and Hindustan Composites.
In preparation for its IPO, Swiggy has shared with its investors that its revenue for FY24 increased by 36% to reach Rs 11,247 crore from Rs 8,265 crore in the previous fiscal year. The company also announced a reduction in its net loss by 44% to Rs 2,350 crore from the previous year’s net loss of Rs 4,179 crore.
In light of these developments, Swiggy has recently expanded its IPO size to $1.4 billion, reflecting the competition in the online grocery delivery sector, where it competes with other platforms such as Zomato-owned Blinkit, Zepto, and Tata-owned BigBasket.
Key investors in Swiggy include Prosus (32%), SoftBank (8%), and Accel (6%). Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority (QIA), and Singapore’s GIC are among the other shareholders in the company.
With its IPO, Swiggy is set to become the second major foodtech company to list on the stock exchanges, following Zomato, which went public in 2021 and currently has a market capitalisation of over $30 billion.
