Swiggy Gets SEBI Nod For IPO, Eyes Listing In November

SUMMARY

Following the nod, the startup will now file two updated DRHPs – one addressing SEBI's comments on its confidential DRHP and another seeking public comments

While the final decision is yet to be taken, the startup is likely to launch its IPO in November

Swiggy declined to comment on the development

Foodtech major Swiggy has received approval from the Securities and Exchanges Board of India (SEBI) for its initial public offering.

Following the nod, the startup will now file two updated draft red herring prospectus (DRHPs) – one addressing SEBI’s comments on its confidential DRHP and another seeking public comments, Moneycontrol reported citing sources.

The report said that Swiggy can file its red herring prospectus (RHP) only after this. The exact size of the public offer is yet to be announced.

“Though no final call has been taken, the Swiggy issue may launch in November. Discussions with anchor investors will begin now,” a source told the publication.

Swiggy declined to comment on the development.

While there is no clarity on the exact size of the IPO, the startup is likely looking to raise $1.4 Bn via IPO. Recently, reports said that it would seek shareholders’ approval to raise the fresh issue size for the public issue to INR 5,000 Cr from INR 3,750 Cr earlier. Besides, the issue will also comprise an offer for sale component of INR 6,664 Cr.

Swiggy filed its IPO papers with the SEBI via the confidential route in April this year. Since then, notable investors, including actors Amitabh Bachan, Madhuri Dixit, Modern Insulators, Hindustan Composites, among others, have purchased stakes in the startup.

In the lead up to its IPO, the startup revealed to its investors that its revenue grew 36% to INR 11,247 Cr in the fiscal year 2023-24 (FY24) from INR 8,265 Cr in the previous year. It also said that it trimmed its net loss by 44% to INR 2,350 Cr during the year under review from INR 4,179 Cr in FY23.

With the IPO, Swiggy will become the second foodtech major to get listed on the bourses. Its rival Zomato went public in 2021. Zomato currently has a market capitalisation of over $30 Bn.

Brokerage firm Elara Capital expects Swiggy to command a lower valuation compared to Zomato. It reasoned that Zomato’s revenue, gross order volume, order count, among other metrics, are better than that of Swiggy.