Swiggy Submits Confidential Draft Papers for $1.25 Billion Public Listing

Swiggy, a company that specializes in delivering food and groceries, has submitted draft documents for an initial public offering to the Securities and Exchange Board of India, according to sources. The company, based in Bengaluru, recently gained approval from shareholders for a public issue worth Rs 10,400 crore ($1.25 billion), and has filed the necessary paperwork through Sebi’s confidential route.

Under this route, the draft red herring prospectuses (DRHPs) do not have to be made public. The IPO plan, which includes a combination of fresh shares worth Rs 3,750 crore ($450 million) and an offer for sale (OFS) of shares worth Rs 6,664 crore ($800 million), was also approved by shareholders. In addition, there will be a pre-IPO placement of up to Rs 750 crore ($90 million) for anchor investors.

Investors such as Prosus, which holds a 33% stake in Swiggy, and SoftBank are expected to sell a portion of their shares in the OFS. Other shareholders of Swiggy include Accel, Elevation Capital, Meituan, Tencent, Norwest Venture Partners, DST Global, Coatue, Invesco, and GIC.

The company has filed for the IPO under the ‘pre-filing’ route, which allows for confidentiality in the initial filing. This route gives companies more flexibility in terms of the issue size, as the number of fresh shares can be changed by up to 50% until an updated DRHP is filed.

Apart from Swiggy, other new-age companies such as Ola Electric, Awfis, Mobikwik, Unicommerce, and Ixigo are also planning to go public. Swiggy’s proposed IPO, valued at Rs 10,400 crore, will be the largest among new-age companies after Paytm’s Rs 16,600 crore offering in 2021. In 2021, Swiggy’s main competitor Zomato went public with a Rs 9,375 crore IPO.

In preparation for its IPO, Swiggy has been reducing its cash burn, resulting in the closure of several experiments and pilot programs, as well as employee layoffs. The company is also integrating its various commerce verticals, such as Mall, InsanelyGood, and SuprDaily, with its primary quick-commerce unit, Instamart.

Source: The Economic Times

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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