Swiggy IPO: Fresh Issue Size Increases By Rs 1,250 Cr To Rs 5,000 Cr; All Eye On EGM

The food tech company Swiggy has increased the size of its initial public offering (IPO) in order to prepare for its 2024-2025 public market debuts, according to a Moneycontrol piece. Previously, an offer-for-sale component valued at Rs 6,664 crore and a fresh issue of shares valued at Rs 3,750.1 crore was planned for Swiggy's upcoming initial public offering (IPO). However, on Tuesday, the company announced that it will instead issue fresh shares worth Rs 5,000 crore, an increase of Rs 1,250 crore from the previous amount, as per an internal set of documents noticed by Moneycontrol. This came after investor Baron Capital reportedly estimated Swiggy's worth at $14.5 billion.

The total value of the IPO would be around $1.4 billion, up from $1.25 billion, if the company's board takes on the revised plan at its extraordinary general meeting (EGM) on October 3. The additional $150 million will come in through a fresh issuance.

Following a 36 per cent rise in sales from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24, Swiggy has demonstrated its strategic capability to join the public markets, signalling a turning point in the Indian startup environment. In FY24, it declared a loss of Rs 2,350 crore.

With 16-17 million daily transactional customers, Swiggy has a market share of around 45% of the Indian food delivery business as of March 2024. Global behemoths like Prosus, Accel, SoftBank, and Invesco are just a few of the major investors in Swiggy. Prosus, which holds a 33% stake in Swiggy, is anticipated to sell a sizable chunk of its stake during the IPO's offer-for-sale phase, as per Motilal Oswal.

In April, Swiggy submitted draft papers for its IPO. An internal report indicates that Swiggy secured strategic funding prior to the initial public offering (IPO) from Amitabh Bachchan's Family Office and Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services.

According to an internal document from 360 One WAM, Swiggy investors valued the Bengaluru-based startup at $11.5 billion as of June, as reported by ET on August 23.

The primary objectives of Swiggy's Initial Public Offering (IPO) are to raise a significant amount of money to support the company's expansion strategies and broaden its service offerings beyond food delivery. For example, the IPO proceeds may be utilised to broaden the company's pick-up and drop services (Swiggy Genie) and grocery delivery (Instamart) verticals. Subject to regulatory clearances, Swiggy's shares are anticipated to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).