Bengaluru-based online food delivery platform Swiggy is likely to file its draft red herring prospectus with India’s regulator markets by as early as the first week of September, according to media reports.
As per YourStory, Swiggy will aim to raise Rs 10,400 crore through its initial public offering (IPO). It will be the only venture capital-backed start-up to exceed Rs 10,000 crore in a public listing after Paytm.
Swiggy had reportedly filed its documents with the Securities and Exchange Board of India (SEBI) for an IPO of Rs 10,400 crore confidentially.
The confidentiality route introduced by SEBI in 2022 helps companies deal with their preliminary filings privately. The route also helps the companies adjust the number of fresh shares proposed up to 50 per cent until an updated DRHP is submitted.
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The draft herring prospectus is filed with SEBI to provide information about the company and the risk associated with investing in it. It outlines the company’s business plans, financials etc., but does not include the final price of the shares.
Before filing its papers confidentially in April, Swiggy reportedly got its shareholder's approval for its IPO comprising a fresh issue of Rs 3,750 crore and an offer for sale worth Rs 6,664 crore.
It is also reported that Swiggy would add a pre-IPO order of around Rs 750 crore.
If the IPO goes as planned, it will make Swiggy one of the biggest-ever public listings in India.
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The proposed IPO comes at a time when Swiggy's biggest rival Zomato has seen its share price has reportedly soared over 67 per cent in the past six months, making it one of India’s hottest stocks in recent times.
A public investor who spoke to YourStory said that Swiggy's enlisting in the public market is good and bad news for the company. The investor reportedly said Swiggy’s rival Zomato has already set a benchmark for the sector and investors would not be clueless when it comes to investing in it. The investor said that Swiggy will have to turn profitable faster without compromising on its growth.
