Swiggy IPO: Accel, Elevation Capital see over 3300% gain, Prosus likely to get Rs 4,254 Cr
Swiggy co-founders Sriharsha Majety and Nandan Reddy are likely to gain Rs 68 crore from the IPO, and Rahul Jaimini to get Rs 45 crore.
Leading consumer internet company has priced its initial public offering (IPO) in the range of Rs 371-390. Some of its early investors like Accel and Elevation Capital will see over 3300% gain on their investments as they will be selling part of their share in the issue.
Swiggy's IPO will be open for bidding from November 6 to November 8 through the book building route and part of its key investors will be selling their shares under the offer for sale (OFS) route.
Swiggy started running its operations in 2014 and did its first major funding round in 2015, which saw venture capital firms like Accel and Elevation Capital (formerly known as SAIF Partners) investing in this company.
Accel, which will be tendering 10.5 million shares in the OFS, will see a return of 3391% as the cost of acquisition per share is Rs 11.17. This takes into account it will be selling its shares at the upper end of IPO i.e., Rs 390. Accel is likely to receive Rs 412 crore through this sale.
Similarly, Elevation Capital will see a gain of 3309% as its cost of acquisition per share is Rs 11.44. It will be tendering 7.39 million shares. This VC firm is likely to get Rs 288 crore.
Prosus, which is the largest shareholder in Swiggy holding 30.93%, is likely to see a gain of 197%, given that its acquisition cost was Rs 131.15 and will be tendering 109 million shares. The VC firm may emerge as the highest earner with a total amount of Rs 4,255 crore.
Norwest Venture Partners may see a gain of 2531% in the IPO and receive Rs 250 crore.
Other investors like Alpha Wave Ventures and Tencent are likely to make modest returns. While Alpha Wave is likely to gain 118%, Norwest Venture Partners will get 135%.
Swiggy co-founder and CEO Sriharsha Majety is likely to gain Rs 68 crore from the IPO as he will be tendering 1.7 million shares. Other founders--Rahul Jaimini and Nandan Reddy--are likely to gain Rs 46 crore and Rs 68 crore, respectively.
The OFS of Swiggy IPO will have 175.1 million shares being tendered and none of this proceeds will come into the company. The company plans to raise Rs 4,499 crore through the fresh issue of shares.
Edited by Megha Reddy