Swiggy IPO: Swiggy IPO anchor allocation opens today: all you need to know

The initial public offering (IPO) of food and grocery delivery company Swiggy will open for anchor investors on November 5, to issue shares to domestic and foreign investors.

ET reported on October 31 that the public issue attracted strong interest from investors, with its $600-million anchor book oversubscribed 25 times, attracting bids worth $15 billion.

Key dates

The IPO subscription will start on November 6 and close on November 8. The anchor book will close today. Swiggy had filed its red herring prospectus on October 29.

Price band, valuation

Swiggy set a price band of Rs 371-390 per share. This values the company at as much as $11.3 billion, up from $10.7 billion at its last funding round in 2022. Listed rival Zomato has a market capitalisation of $26 billion.

IPO details

• The Bengaluru-based company increased the targeted primary fundraising through issuance of new shares to Rs 4,499 crore from its earlier plan of Rs 3,750 crore.
• In the offer for sale (OFS) window, the company will now sell 175.1 million shares, against the earlier plan of selling 185.3 million shares.
• Founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy will part-sell their stakes.

Investors

• Prosus, the largest investor in Swiggy, will divest 109.1 million shares in the company.
• Early investors such as Accel, Elevation Capital and Norwest Venture Partners will divest part of their holdings in the offer for sale.
• As per its IPO papers, Meituan, DST Global and Norwest Venture Partners have sold shares worth $209 million, $172 million and $46 million, respectively, in Swiggy.

Use of capital

• Underscoring the intensity of quick commerce competition in the country, Swiggy will allocate nearly Rs 1,179 crore to its Instamart business
• The company will invest Rs 755.4 crore in expanding its dark store network, while lease and licence payments for dark stores or warehouses would amount to Rs 423.3 crore.
• At the end of the June quarter, Swiggy Instamart had 557 dark stores. The fresh investment will take this number to 741.
• Swiggy will also use Rs 703.4 crore to improve technology such as cloud infrastructure and logistics optimisation.

Financials

Swiggy reported operating revenue of Rs 3,222 crore in the June quarter, with its net loss up at Rs 611 crore from Rs 564 crore a year ago. During the same period, Instamart clocked a gross order value (GOV) of Rs 2,724 crore and revenue of Rs 403 crore.