Ahead Of IPO, Swiggy Bags INR 5,085 Cr From Anchor Investors

SUMMARY

The startup allotted 13.03 Cr shares to 75 anchor investors, including Fidelity, HSBC India, Invesco India, Whiteoak Capital, Societe Generale, among others, at INR 390 apiece

As per Swiggy, 19 domestic mutual funds applied for the anchor round through 69 schemes, which accounted for 40.65% of the total anchor allocation

Set to open today, Swiggy’s IPO comprises a fresh issue of shares worth up to INR 4,499 Cr and OFS component of up to 17.5 Cr equity shares

Ahead of its highly anticipated market debut, foodtech major Swiggy on Tuesday (November 5) raised INR 5,085 Cr from anchor investors at INR 390 per share.

The startup allotted 13.03 Cr shares to 75 anchor investors, including Fidelity, HSBC India, Invesco India, Whiteoak Capital, and Societe Generale, among others.

“The IPO Committee of the Company at its meeting held on November 5, 2024… has finalised allocation of 13,03,85,211 equity shares of face value of INR 1/- each, to anchor investors at anchor investor allocation price of INR 390 per equity share..,” the company’s filing with the BSE read.

As per Swiggy, as many as 19 domestic mutual funds applied for the anchor round through 69 schemes, which accounted for 40.65% (5.3 Cr shares ) of the total anchor allocation.

The foodtech major’s public issue will open today and will conclude on August 8. The IPO comprises a fresh issue of shares worth up to INR 4,499 Cr and an offer-for-sale (OFS) component of up to 17.5 Cr equity shares.

It has set a price band in the range of INR 371-390 per share for its public issue. At the upper end of the spectrum, the company would rake in fresh proceeds worth INR 11,324 Cr from its IPO.

As per the RHP, it plans to utilise the fresh capital to scale up its dark store network, brand marketing, investments in its logistics subsidiary Scootsy, inorganic growth through unidentified acquisitions and for general corporate purposes.

Swiggy will likely finalise the basis of allotment of IPO shares by November 11 and the shares will be credited to the demat accounts of successful bidders by November 12. The shares will list on the BSE and the NSE on November 13.

The foodtech juggernaut has set aside 75% of its public issue for qualified institutional buyers (QIBs), while the remaining 15% and 10% have been earmarked for non-institutional investors (NIIs) and retail investors, respectively.

Initially, Swiggy filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) via the confidential pre-filing route for an IPO worth INR 10,414.1 Cr in April 2024. Subsequently, the company filed its updated IPO papers with the market regulator in September and received SEBI’s nod shortly thereafter.

Swiggy’s net losses rose 8% year-on-year (YoY) to INR 611 Cr in the first quarter (Q1) of the fiscal year 2024-25 (FY25) while operating revenue jumped 35% YoY to INR 3,222.2 Cr in the quarter under review.

Meanwhile, Swiggy incurred a net loss of INR 2,350 Cr in FY24 compared to a loss of INR 4,179.3 Cr in the year-ago period. However, revenue from operations zoomed 36% YoY to INR 11,247.3 Cr in the fiscal under review from INR 8,264.5 Cr in the previous year.