Swiggy IPO to open on November 6

Swiggy's initial public offering (IPO) will open for bids from investors between November 6 and 8.

The IPO will be through the book-building route, which will be a combination of fresh issue of shares as well as an offer for sale (OFS) from existing shares. The price of the IPO has not been decided as yet; it will be announced two days prior to the start of the anchor investor bidding.

Reports suggest that the IPO will be priced in the range of Rs 371-390 per share.

The Bengaluru-headquartered food delivery company aims to garner Rs 4,499 crore through the fresh issue of shares. The OFS segment will see existing shareholders, who also includes promoters, tendering around 175 million shares. The bidding date for the anchor investors is November 5.

According to reports, Swiggy aims to raise around Rs 11,700 crore as the final figure can be arrived after the formal announcement of the price band. The company is expecting a valuation of around $11 billion at the time of its IPO.

The final prospectus of Swiggy has seen certain changes. The company now aims to raise Rs 4,499 crore through a fresh issue of shares against its earlier target of Rs 3,750 crore. The offer-for-sale component of the IPO has been reduced to 175.1 million shares against the earlier 185.3 million shares.

Swiggy's IPO is much awaited in the Indian startup ecosystem, which has seen six companies—GoDigit Insurance, Ixigo, Awfis, Unicommerce, FirstCry and Ola Electric—go public this year. The IPO is likely to be the largest public issue for this year till now.

The key investors who will be selling their shares in the IPO include Accel, Elevation Capital, Prosus, Tencent, and Norwest. Each of them stands to make certain gains depending on the acquisition price.

Swiggy reported a net revenue of Rs 3,222 crore in the first quarter of FY25, recording a growth of 35% compared to Rs 2,390 crore in FY24. The loss for the quarter stood at Rs 611 crore, compared to Rs 564 crore in the year-ago period.

The public issue of Swiggy will set up an interesting competition with key rival Zomato, which went public in 2021. Zomato has been on a roller-coaster ride ever since it became a public limited company with its share price even dropping below its issue price of Rs 76 to around Rs 48 in the early part of 2023.

However, since then, the share price of Zomato has been on a steady rise. It now enjoys a market capitalisation of around $28 billion, significantly up from $8 billion three years ago.

(The copy was updated to reflect changes in RHP.)