Swiggy is set to launch its long-awaited IPO on November 6, with the bidding period open until November 8. However, interest in the shares has waned in the grey market, with a nearly 30% drop in premium compared to earlier trading highs. A month ago, shares were priced at Rs 515 in the unlisted market.
The food delivery giant is offering its IPO at a reduced valuation of $11.3 billion, down from its previous target of around $15 billion. This adjustment is largely due to market volatility and the disappointing debut of Hyundai India’s IPO. Swiggy’s last private valuation was $10.7 billion, following a $700 million fundraising round led by Invesco in January 2022.
In this IPO, Swiggy has boosted its fresh equity sale to Rs 4,499 crore while trimming its offer-for-sale (OFS) component to 17.5 crore shares. The proceeds from the IPO will be allocated towards investments in its subsidiary, Scootsy, technology enhancements, and marketing initiatives, planned over the next four to five years.
Notable investors like BlackRock and the Canada Pension Plan Investment Board (CPPIB) are expected to participate in the IPO, which is poised to be the second-largest stock offering in India this year.
Swiggy faces stiff competition from Zomato in the Indian online food delivery market, as both companies have been heavily investing in “quick-commerce,” which focuses on delivering groceries and other products within 10 minutes.
