Swiggy IPO: The food-delivery platform is all set to make its D-street debut on November 6. The Zomato rival has been in the spotlight for a while now. The company is planning to raise Rs 11,300 crore through its IPO. As per a report by PTI report, the price band is expected to be set between Rs 371 and Rs 390 per share.
Swiggy is this year's most highly anticipated new age company to go for listing. The offering includes a fresh issue of shares worth Rs 4,500 crore, along with an OFS (offer for sale) amounting to Rs 6,800 crore. Despite subdued primary market sentiment following Hyundai Motor’s listing, Swiggy’s IPO is expected to bring renewed excitement to the primary market.
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Key Dates
The issue will open on November 6 and conclude on November 8. As for anchor investors, bidding will open on November 5, as per the DRHP (draft red herring prospectus) papers.
Who are the sellers?
Those selling shares in the OFS route are -- Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe B.V.
Early investors like Accel, Elevation Capital and Norwest Ventures are making up to 35 times in returns on the portion they decided to sell. On the other hand, SoftBank continues to stay invested.
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Use of Proceeds
Going by the IPO papers, proceeds from the fresh issue to the tune of Rs 137.41 crore will be used for debt payment of subsidiary Scootsy.
Additionally, Rs 982.40 crore will be invested in Scootsy for expanding the Dark Store network in the quick commerce segment, with Rs 559.10 crore allocated for setting up dark stores and Rs 423.30 crore for lease or licence payments.
The company will also invest Rs 586.20 crore in technology and cloud infrastructure, Rs 929.50 crore for brand marketing and business promotion, and funds will be allocated for inorganic growth and general corporate purposes.
SoftBank Remains Committed
The primary market has remained relatively busy this year with several mega issues making their way to D-Street. But one of the biggest names creating buzz in the India's IPO market is perhaps SoftBank. The investment firm witnessed three of its portfolio companies debut on the market this year—Ola Electric, FirstCry and Unicommerce.
Despite strong listings, the share prices of all these three companies have faced continued pressure. Ola Electric has been the hardest hit as the share price of the EV maker has declined by more than 45 per cent from its peak
(With inputs from PTI)
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