Swiggy, a food delivery and fast commerce company, is preparing to raise Rs 5,000 crore ($602 million) in a new issue as part of its initial public offering (IPO ).
The company, which is funded by Prosus, has already set a goal of Rs 6,664 crore for an offer for sale (OFS). It intends to request board sanction for the OFS during the first week of the following month.
Swiggy’s board has approved a special resolution to issue equity shares, valued at up to Rs 5,000 crore, subject to shareholder approval at an Extraordinary General Meeting (EGM) on October 3.
Swiggy’s initial public offering (IPO) has been anticipated since the company confidentially submitted draft documents in April. The company has also been granted shareholder approval to raise a total of Rs 10,400 crore, with Rs 3,750 crore being raised through a fresh issue and Rs 6,664 crore through an OFS, according to reports.
Nevertheless, the size of Swiggy’s IPO may fluctuate, as the most recent resolution specifies that the new issue is 1.3 times larger than the previously anticipated Rs 3,750 crore. The draft red herring prospectus (DRHP) of the Bengaluru-based company is anticipated to be submitted to SEBI in the near future.
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Swiggy obtained strategic investments from Hindustan Composites and Amitabh Bachchan’s Family Office prior to its initial public offering. In the meantime, Swiggy was recently valued at $14.5 billion by investor Baron Capital.
In FY24, the food technology company experienced substantial financial growth, with a 36% year-on-year increase in revenue to Rs 11,247 crore and a 44% reduction in losses to Rs 2,350 crore. Swiggy’s food business contributed Rs 6,100 crore to its overall income, while its quick commerce subsidiary, Instamart, generated Rs 1,100 crore in gross revenue in FY24.
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