Swiggy IPO has taken a significant step forward as the food tech giant filed its updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on September 26. The filing includes a fresh issue component valued at Rs 3,750 crore, along with an offer for sale (OFS) comprising 18.53 crore shares.
With recent share prices hovering around Rs 350, the OFS could potentially raise about Rs 6,500 crore. This move involves investors such as Accel, Coatue, Alpha Wave, Elevation, Norwest, and Tencent selling shares to reduce their stakes, while new investors look to capitalize on Swiggy’s long-term growth prospects and diversify away from Zomato.
Also read: Reliance Jio IPOs: How a ₹9.3 Lakh Crore Valuation Will Impact Future Reliance IPOs
Swiggy and Zomato dominate India’s food delivery market, which is projected to reach Rs 2 lakh crore by 2030. Together, they control over 90% of the industry. While Zomato went public in 2021, Swiggy is set to follow suit in the coming months.
Key investors in Swiggy include Prosus (32%), SoftBank (8%), and Accel (6%), along with others like Elevation Capital and Tencent. The company was last valued at $10.7 billion during a funding round in January 2022.
Also Read: Paytm Share Price Up by 5.5% Due To Block Deal: Get the Full Story Here
There is optimism among bankers that Swiggy can achieve a market capitalization between $10 billion and $13 billion upon listing. The IPO preparations have been in motion since November 2023, generating considerable anticipation in the market. Recently, high-net-worth individuals and family offices have been purchasing shares in the company, with valuations ranging from $9 billion to $9.3 billion in secondary market transactions.
