The highly anticipated mega Swiggy India IPO, backed by SoftBank, is set to open for public subscription on November 6, with the window closing on November 8. Through this IPO, Swiggy plans to raise approximately R 11,300 crore. The price band for Swiggy’s IPO has been set between Rs 371 and Rs 390 per share, as reported by Bloomberg.
At the upper price band, Swiggy India’s valuation is pegged at an impressive $11.3 billion, marking a significant milestone for the company in the Indian food delivery market.
Swiggy IPO Structure and Share Allocation
The IPO will comprise a fresh issue of Rs 4,499 crore, along with an offer for sale (OFS) by existing shareholders, who intend to offload up to 17.5 crore shares. A reservation of 7.5 lakh shares has been allocated for Swiggy’s employees as part of the employee stock option plan.
Swiggy has structured the IPO with a 75% reservation for Qualified Institutional Buyers (QIBs), while 15% is earmarked for non-institutional investors, and the remaining 10% will be available for retail investors.
Swiggy IPO: Utilisation of funds
The company has outlined a detailed plan for the utilization of funds raised through the IPO. Swiggy intends to channel Rs 1,343.5 crore towards investments in its subsidiary, Scootsy.
Furthermore, Rs 703 crore is allocated for enhancing its technology and cloud infrastructure, while Rs 1,115 crore is set aside for brand marketing and business promotion. The remainder will be utilized for inorganic growth and general corporate purposes.
Swiggy IPO one of India’s largest public offerings
Swiggy’s Rs 11,300 crore IPO, if fully subscribed, will rank among India’s largest public listings. It follows Hyundai Motor India’s record-breaking Rs 27,856 crore IPO from earlier this month, underscoring a period of intense activity in the country’s IPO market.
Swiggy market position Vs peers
Founded in 2014, Swiggy partners with more than 200,000 restaurants across India, delivering food to the world’s most populous nation.
The company competes directly with other major players in the fast-growing quick commerce sector, including Zomato Ltd., Amazon’s India unit, and Tata Group’s BigBasket.
Lead Managers and Regulatory Clearance
Swiggy’s IPO is being managed by top financial institutions, including Citi, JP Morgan, Kotak Mahindra Capital, Jefferies, ICICI Securities, Avendus Capital, and Bofa Securities.
Legal counsel is provided by Cyril Amarchand Mangaldas. In September, Swiggy received approval from the Securities and Exchange Board of India (SEBI) to list under the country’s new confidential IPO filing process.