Food delivery platform Swiggy has received the nod of investors to increase the IPO size to Rs 5,000 crore in a fresh issue. The company initially aimed to increase Rs 3,750 crore from the fresh issue.
Swiggy filed its draft IPO papers with the Securities and Exchange Board of India (Sebi) on September 27
Food delivery platform Swiggy has received the nod of investors to increase the IPO size to Rs 5,000 crore in a fresh issue. The company initially aimed to increase Rs 3,750 crore from the fresh issue.
This is as per a Reuters report. Now, the size of the IPO will increase from $1.25 billion to $1.4 billion. While the exact valuation of the company is not available, as per media reports, Swiggy is aiming to target a valuation of $15 billion.
Swiggy filed its draft IPO papers with the Securities and Exchange Board of India (Sebi) on September 27, 2024. When the DRHP was filed, the company highlighted that it was supposed to raise a fresh issue of Rs 3,750 crore and also an offer for sale of 18.5 crore shares.
With regards to spending from the IPO, the company will be focusing extensively on the quick commerce segment. The company plans to open dark stores in existing places such as Bengaluru, Pune, Mumbai and Kolkata. Read: What Swiggy's IPO Filing Reveals About its Bid to Take on Zomato
Swiggy plans to invest in its material subsidiary Scootsy for the repayment or pre-payment, in full or in part, of certain or all borrowings amounting to Rs 1,374.14 crore. The company will make investment in Scootsy to expand its dark store network in the quick commerce segment and also covering lease or license payments for the same. The investment for expanding the dark stores will be Rs 5,591 crore.
In terms of financials, Swiggy reported a revenue of Rs 11,247 crore in FY24 from Rs 8,265 crore in FY23. Meanwhile, the company reduced its losses by 44 per cent from Rs 4,179 crore to Rs 2,350 crore in FY24.
Swiggy's IPO is set to launch amid a booming IPO market in India. According to a report by GlobalData, the country witnessed 227 IPOs in the first eight months of 2024.
This marks a nearly threefold increase compared to the $4.3 billion raised in the same period in 2023. “India topped the global IPO market, with 227 transactions totaling $12.2 billion in the first eight months of 2024. The remarkable performance was driven by strong market sentiment, a favorable macroeconomic environment and a surge in investor interest fueled by fear of missing out (FOMO),” adds the report.
Commenting on the surge of public listings by companies, Murthy Grandhi, Company Profiles Analyst at GlobalData, said in a statement that the IPO market underwent an “uptick in activity in 2024 as macroeconomic conditions stabilized and there was a resurgence in private equity and venture capital-backed listings.”.