Swiggy IPO To Open On Nov 6, Value The Company At $11.3 Bn

Foodtech major Swiggy’s IPO is reportedly set to open for public subscription on November 6 and close on November 8. 

The total size of the issue, including the offer for sale, will be INR 11,700 Cr to INR 11,800 Cr, Moneycontrol reported, citing sources. The anchor investor bidding date would be November 5. 

The report also said that the company is seeking a valuation of $11.3 Bn, slightly higher than its last private valuation of $10.7 Bn.

“At the top end of the price band, Swiggy is targeting an IPO valuation of around $11.3 Bn. The primary component of the issue has been upsized to around INR 4,500 Cr and the offer for sale component has also been tweaked depending on investor participation,” a source was quoted as saying. 

It is pertinent to mention that Swiggy was initially said to be eyeing a valuation of $15 Bn for the IPO. Earlier this week, a report said that the company planned to cut its valuation target to $12.5 Bn to $13.5 Bn owing to the sharp fall in the Indian stock market recently.

The broader market has been on a sharp decline for a large part of October. After touching all-time highs last month, benchmark indices Sensex and Nifty 50 have tumbled about 8%.

The market capitalisation of Swiggy’s competitor Zomato currently stands at over $26 Bn.

Inc42 has reached out to Swiggy seeking a comment on the latest developments. The story will be updated on receiving a response.

It is also pertinent to note that the targeted valuation would be about $2 Bn short of what Swiggy’s investor Invesco last valued the startup at. Earlier this month, Invesco marked up Swiggy’s valuation by 25% to $13.3 Bn.

Recently, Swiggy also received the nod from its shareholders to increase the fresh issue size to INR 5,000 Cr from the initial INR 3,750 Cr.

As per its updated draft red herring prospectus (DRHP), Swiggy’s public issue was to comprise a fresh issuance of shares worth INR 3,750 Cr and an OFS component of 18.53 Cr equity shares.

The company has been launching a number of new offerings and services ahead of its IPO.

While it is piloting a 10-minute medicine delivery service in Bengaluru, it has also launched international login to allow NRIs to place orders for food and grocery for delivery in India. Besides, it is piloting a concierge service for high-end customers.

On the financial front, the company’s net loss rose 8% year-on-year (YoY) to INR 611 Cr in the June quarter of 2024. Operating revenue grew 35% YoY to INR 3,222.2 Cr.