The issue comprises a fresh issue of shares amounting to Rs 4,499 crore with an offer for sale (OFS) for 17,50,87,963 equity shares. At the upper end of the price band, the OFS component stands worth Rs 6,828.43 crore.
Under the offering, investors can bid for a minimum of 38 shares in 1 lot and in multiples of 38 thereof.
As part of the OFS, Accel India IV (Mauritius), Apoletto Asia, Alpha wave Ventures, Coatue PE Asia, DST EuroAsia V, Elevation Capital V, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners VII-A-Mauritius and Tencent Cloud Europe will be offloading their stakes in the company.
Additionally, the issue will open on November 5 for anchor investor bidding.
In dollar terms, the company is currently valued much lower than the initial targeted valuation of around $15 billion.
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According to reports, the IPO was reduced due to prevailing market volatility and the lacklustre debut of Hyundai India. Swiggy’s last private round valuation was $10.7 billion when it raised $700 million in a round led by US asset manager Invesco in January 2022.The company proposes to use the IPO proceeds for investment in its material subsidiary Scootsy, investment in technology and cloud infrastructure and also brand marketing and business promotion. This will be done over a four to five year period.
Marquee funds BlackRock and Canada Pension Plan Investment Board (CPPIB) will likely invest in the IPO, which will be the country’s second-biggest stock offering this year.
Swiggy competes with Zomato in India’s online restaurant and food deliveries sector, and both have made major bets on a boom in “quick-commerce,” where groceries and other products are delivered in 10 minutes.
After its IPO, analysts believe Swiggy will aspire to turn EBITDA positive in the near term by curtailing its promotional and advertising spends.
“If we look back, post IPO Zomato has quickly shifted its focus on improving profitability which has paid off well. We expect Swiggy to do the same,” said Atish Matlawala, Sr Fundamental Analyst, SSJ Finance & Securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
On Wed, Oct 30, 2024 at 8:27 AM Nishtha Awasthi <nishtha.awasthi@timesinternet.in> wrote:
Swiggy IPO: Price band fixed at Rs 371-390 for Rs 11,327 crore IPO. Check details
Nishtha Awasthi
Online food delivery company Swiggy today announced the price band for its upcoming Rs 11,327.43 crore IPO as Rs 371-390 apiece.
The issue comprises a fresh issue of shares amounting to Rs 4,499 crore with an offer for sale (OFS) for 17,50,87,963 equity shares. At the upper end of the price band, the OFS component stands worth Rs 6,828.43 crore.
As part of the OFS, Accel India IV (Mauritius), Apoletto Asia, Alpha wave Ventures, Coatue PE Asia, DST EuroAsia V, Elevation Capital V, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners VII-A-Mauritius and Tencent Cloud Europe will be offloading their stakes in the company.
In dollar terms, the company is currently valued much lower than the initial targeted valuation of around $15 billion.
According to reports, the IPO was reduced due to prevailing market volatility and the lacklustre debut of Hyundai India. Swiggy’s last private round valuation was $10.7 billion when it raised $700 million in a round led by US asset manager Invesco in January 2022.
Swiggy is likely to launch the IPO in the first week of November with November 6 as the opening date till November 8.
The company proposes to use the IPO proceeds for investment in its material subsidiary Scootsy, investment in technology and cloud infrastructure and also brand marketing and business promotion. This will be done over a four to five year period.
Marquee funds BlackRock and Canada Pension Plan Investment Board (CPPIB) will likely invest in the IPO, which will be the country’s second-biggest stock offering this year.
Swiggy competes with Zomato in India’s online restaurant and food deliveries sector, and both have made major bets on a boom in “quick-commerce,” where groceries and other products are delivered in 10 minutes.
After its IPO, analysts believe Swiggy will aspire to turn EBITDA positive in the near term by curtailing its promotional and advertising spends.
“If we look back, post IPO Zomato has quickly shifted its focus on improving profitability which has paid off well. We expect Swiggy to do the same,” said Atish Matlawala, Sr Fundamental Analyst, SSJ Finance & Securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
