Business News Desk, Mega IPO of food and grocery delivery platform Swiggy India is going to open for subscription from 6 November 2024. Interested investors can bid for this till 8 November 2024. The company intends to raise ₹11,300 crore through this IPO. If Swiggy India is successful in raising the stipulated funds, it will join the list of some of the largest public listings in the country, which also includes Hyundai Motor India’s record-breaking ₹27,856 crore IPO earlier this month. According to Bloomberg, the price band for this issue has been set between ₹371 – ₹390 per share. After this IPO, the valuation of Swiggy India can reach $11.3 billion.
IPO structure
This IPO includes a new issue of ₹4,499 crore, while existing shareholders will sell 17.5 crore shares through offer-for-sale (OFS). Swiggy has reserved 7.5 lakh shares for its employees. Additionally, 75% of the net offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.
Where will the company use the funds
Of the total funds raised through IPO, Swiggy will use ₹1,343.5 crore to invest in its subsidiary Scootsy. Meanwhile, ₹703 crore will be used for investment in technology and cloud infrastructure. Additionally, ₹1,115 crore will be spent on brand marketing and business promotions, while the remaining amount will be allocated for inorganic growth and general corporate purposes.
Book Running Lead Manager and Registrar
Citi, JP Morgan, Kotak Mahindra Capital, Jefferies, ICICI Securities, Avendus Capital and BofA Securities will be the book running lead managers of the IPO, while the responsibility of legal advice has been entrusted to Cyril Amarchand Mangaldas.
Swiggy has a big network
According to Swiggy India’s website, the company has partnered with more than 200,000 restaurants for food delivery in India. Its rivals include Zomato Limited, the India unit of e-commerce giant Amazon.com Inc. and Tata Group’s BigBasket.
