Swiggy IPO has received approval from the Securities and Exchange Board of India (SEBI) to move forward with its Initial Public Offering. This pivotal development positions Swiggy to launch its IPO, anticipated in November 2024, aiming to raise over ₹11,000 crore (around $1.4 billion).
The IPO structure includes both fresh share issuance and an offer-for-sale. Swiggy plans to raise approximately ₹5,000 crore through new shares and about ₹6,664 crore via the sale of shares from existing shareholders. This strategy aims to strengthen the company’s financial health amid growing competition.
Before the official launch, Swiggy will publish its updated draft red herring prospectus (UDRHP) for at least 21 days, allowing the public to review and provide feedback. This feedback period is essential for refining the offer document ahead of the IPO launch.
The upcoming IPO arrives as the Indian food delivery market is rapidly changing, with Swiggy facing competition primarily from Zomato, which went public in 2021. Together, these companies hold over 90% of the market share, making Swiggy’s public listing a significant milestone.
Despite facing recent financial losses, including a net loss of $207 million for the nine months ending December 2023, Swiggy’s growth potential and strong market position present an attractive opportunity for potential investors as it prepares for this important public debut.
