Swiggy Gets Approval To Raise Fresh Issue Size To INR 5,000 Cr

Swiggy’s Sriharsha Majety, Investors Sold Shares Worth INR 670 Cr Ahead Of IPO

SUMMARY

The foodtech major received the approval from its shareholders to increase fresh issue size to INR 5,000 Cr from INR 3,750 Cr earlier

Swiggy will look to raise a total of $1.4 Bn through its IPO, up from previously planned $1.25 Bn, at a likely valuation of $15 Bn

Besides the fresh issue, Swiggy’s IPO will comprise an offer for sale component of 18.53 Cr shares

IPO-bound Swiggy has reportedly received approval from its shareholders to increase the size of the fresh issue in its initial public offering to INR 5,000 Cr from INR 3,750 Cr earlier.

The foodtech major received the approval at its extraordinary general meeting (EGM) on October 3, Moneycontrol reported.

The Bengaluru-headquartered startup had earlier said that it would seek shareholders’ nod to approve raising an additional INR 1,250 Cr through the fresh issuance of shares.

Now that Swiggy has obtained consent of its shareholders, it will look to raise a total of $1.4 Bn through its IPO, up from previously planned $1.25 Bn, at a likely valuation of $15 Bn, the report said, citing sources.

Swiggy declined to comment on Inc42 queries on the development.

This comes days after the Sriharsha Majety and Nandan Reddy-led company filed an updated draft red herring prospectus (DRHP) with market regulator SEBI for its much-awaited public listing.

As per the DRHP, Swiggy planned to raise INR 3,750 Cr through fresh issuance of shares. Besides, its IPO also has an offer for sale component of 18.53 Cr shares.

Ahead of its highly-anticipated IPO, US-based asset manager Invesco marked up Swiggy’s valuation to $13.3 Bn, a jump of 25% over the last fair value recorded by the investor.

Recently, brokerage firm Elara Capital said it expects Swiggy to command a lower valuation in the public market as compared to Zomato as it continues to lag behind the Deepinder Goyal-led startup across several key metrics such as revenue, gross order volume, and order count.

However, investors have been lining up to buy unlisted shares of Swiggy ahead of its IPO.

As per Swiggy’s DRHP, its consolidated net loss widened over 8% to INR 611 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 564.08 Cr in the year-ago period owing to a surge in operating costs.

However, Swiggy’s revenue from operations zoomed 35% to INR 3,222.2 Cr during the quarter under review from INR 2,389.8 Cr in Q1 FY24 on the back of strong growth in its food delivery and quick commerce businesses.