Swiggy fixes the price band for its ₹11,327 crore IPO — details here

SoftBank-backed Swiggy Ltd. has announced the price band for its Initial Public Offering (IPO), which opens for subscription on November 6, 2024.

The company has fixed the price band between ₹371 to ₹390 per equity share. Investors can bid for a minimum of 38 shares in one lot and then in multiples of 38 thereof.

At the upper end of the price band, the company intends to raise ₹11,327.43 crore, which includes a fresh issue of ₹4,499 crore, while existing shareholders will sell up to 17.5 crore shares.

Under the OFS, investors participating include Accel India IV, Apoletto Asia, Alpha Wave Ventures, Coatue PE Asia XI, DST EuroAsia V, Elevation Capital V, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners, Tencent Cloud Europe, among others.

Swiggy is expected to have a post-listing market capitalisation of ₹87,299 crore at the upper end of the price band.

Anchor book for the issue will open on November 5 while the issue will close for bids on November 8, 2024.

Swiggy has reserved 7.5 lakh shares for its employees. Additionally, up to 75% of the net offer has been set aside for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.

The company will use ₹1,343.5 crore out of net fresh issue proceeds for investment in its subsidiary Scootsy, and ₹703 crore for investment in technology and cloud infrastructure. Furthermore, ₹1,115 crore will be spent on brand marketing and business promotion expenses, with the remainder allocated for inorganic growth and general corporate purposes.

The ₹11,327 crore IPO, if successful, will position Swiggy alongside some of the country’s largest public listings, including the record-breaking ₹27,856 crore Hyundai Motor India’s IPO earlier this month.

Founded in 2014, Swiggy partners more than 200,000 restaurants across India to deliver food in the world’s most populous nation, as per its website. Its rivals include Zomato Ltd., e-commerce giant Amazon.com Inc.’s India unit and conglomerate Tata Group’s BigBasket in the country’s fast-growing quick commerce sector.

Swiggy posted a net loss of ₹611.101 crore, and a revenue of ₹3,310.11 crore for the June 2024 quarter. The company reported a net loss of ₹2,350.24 crore and a revenue of ₹11,634.35 crore for the financial year ended on March 31, 2024.

Kotak Mahindra Capital Company Ltd., Citigroup Global Markets India Pvt. Ltd., Jefferies India Pvt. Ltd., Avendus Capital Pvt. Ltd., JP Morgan India Pvt. Ltd., Bofa Securities India Ltd. and ICICI Securities Ltd. are the book running lead managers of the Swiggy IPO, while Link Intime India Pvt. Ltd. is the registrar.

The allotment for the Swiggy IPO is expected to be finalised on November 11, 2024. Swiggy IPO will list on BSE, NSE with tentative listing date fixed as November 13, 2024.