Food delivery giant Swiggy has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its IPO (Initial Public Offering). This marks an important step for Swiggy as it prepares to go public. The company had filed its confidential offer document on April 30, 2024, under SEBI’s pre-filing route, making this a major milestone for its public debut. However, specific details about the IPO remain undisclosed at this stage.
IPO Size and Next Steps
According to reports, Swiggy has increased the size of its IPO to over Rs 11,000 crore, which includes a fresh fundraise of around Rs 5,000 crore. Before moving forward with the IPO, Swiggy must release its Updated Draft Red Herring Prospectus (UDRHP). This document will be available for public review and feedback for at least 21 days. After this public scrutiny period, Swiggy will be allowed to proceed with its IPO, which is expected to launch in November 2024.
If successful, Swiggy will become the second food delivery company in India to go public, following its rival Zomato. Zomato has shown impressive performance since its IPO, with its stock value increasing 2.3 times this year and the company now valued at Rs 2.6 trillion. Swiggy hopes to capitalize on similar investor enthusiasm in the food delivery sector.
Confidential Filing Route
Swiggy’s IPO is notable as it will be the first company to go public under SEBI’s confidential filing route. Alongside Swiggy, other firms like Vishal Mega Mart, Oyo, and Tata Play have also chosen this route, but none have launched their IPOs yet. This method allows companies to keep the offer document confidential during the initial stages, giving them more flexibility in planning their public launch.
As Swiggy prepares for its IPO, the company aims to further establish itself in India’s rapidly growing food delivery market. Following Zomato’s successful entry into the public markets, Swiggy is positioned to attract significant investor interest and expand its market reach.
