Swiggy, one of India’s top food delivery companies, is preparing for its IPO (Initial Public Offering), with its price band between Rs 371 and Rs 390 per share. According to the recently released red herring prospectus (RHP), the IPO will open for subscriptions on November 6 and close on November 8.
Swiggy plans to raise around Rs 11,327.4 crore through this IPO if shares are sold at the upper price band. The offering includes a fresh issue of Rs 4,499 crore and an offer for sale (OFS) of 17.5 crore shares. This is slightly different from earlier plans, where the OFS was set to release 18.5 crore shares, while the fresh issue was initially estimated at Rs 3,750 crore but has now been increased.
Swiggy Valuation and Financial Performance
If the IPO hits the upper price band, Swiggy’s valuation is expected to be approximately Rs 87,299 crore (about $10.38 billion). This valuation is lower than the initial target of $11.2 billion. Swiggy’s Q1 FY25 results reveal revenue from operations at Rs 3,222.2 crore, which is an increase from Rs 2,389.8 crore year-on-year. However, losses have also grown, with loss after tax rising to Rs 611 crore from Rs 564.1 crore in the previous year.
Allocation of IPO Proceeds
Swiggy plans to use the proceeds from the IPO in several strategic areas:
- Investment in Scootsy: Swiggy’s subsidiary focused on premium delivery services.
- Expansion of Dark Stores: These are specialized stores for Swiggy’s quick commerce business, enhancing faster delivery for everyday essentials.
- Technology and Cloud Infrastructure: To support and optimize the growing demand across Swiggy’s platform.
This IPO is expected to be one of India’s largest, joining the ranks of major offerings like Hyundai Motor’s recent IPO.
Know About Swiggy
Founded in 2014 and based in Bangalore, Swiggy has expanded to over 580 cities in India and partners with 200,000+ restaurants nationwide. Swiggy’s growth reflects its strong market position and the popularity of food delivery services in India, making it one of the most-watched IPOs of the year.
