Swiggy IPO: Swiggy shareholders give nod to up IPO fresh issue component to Rs 5,000 crore

Shareholders of food and delivery platform Swiggy have cleared the company’s proposal to increase the fresh issue component of its upcoming initial public offering (IPO) to Rs 5,000 crore, people briefed on the development told ET.
Earlier, the company planned a fresh issue of Rs 3,750 crore and an offer-for-sale (OFS) component of 185.3 million shares.

“The approval has been granted by shareholders for the enabling provision to increase the fresh issue component…this means the company can increase fresh capital raise to Rs 5,000 crore if required,” one of the persons said.
Another person said a final call on this will be taken by the company in consultation with its bankers.

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On September 27, Swiggy filed an updated draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (Sebi) for its IPO. It had, in April, submitted a confidential prospectus to Sebi under the regulator’s pre-filing route.

Also Read | Lion’s share of Swiggy’s IPO proceeds to bulk up Instamart dark store count

In its updated prospectus, Swiggy had said it plans to deploy proceeds from the fresh issue towards expanding its quick commerce operations by opening more dark stores, or microwarehouses from where 10-minute deliveries are made.As of June 30, Swiggy’s quick commerce unit Instamart had 557 active dark stores, up from 421 as of June 30, 2023. As of September 10, it had 605 active dark stores.

As per the latest financials reported in the prospectus, Swiggy posted a 34% year-on-year (YoY) rise in operating revenue for the June quarter to Rs 3,222 crore.

Net losses, however, widened during the quarter to Rs 611 crore, from Rs 564 crore a year earlier as the battle in the quick commerce space intensified with rivals Zomato-owned Blinkit and Nexus Venture Partners-backed Zepto deepening their presence.