Swiggy Upcoming IPO: Aiming for $12 Billion Valuation
Swiggy, the prominent food and grocery delivery platform in India, is gearing up for its Initial Public Offering (IPO) with a target valuation between $11.7 billion and $12.7 billion. The company plans to launch its IPO in the first half of November 2024, pending market conditions.
This article explores the key details surrounding Swiggy upcoming IPO, including its structure, competitive landscape, and potential impact on the market.
Key Details of Swiggy Upcoming IPO
| Date | Event | Details |
|---|---|---|
| September 24 | SEBI Approval | Received approval for IPO filing |
| October 20 | IPO Announcement | Target valuation between $11.7 billion and $12.7 billion |
| November 2024 | Expected Launch | Anticipated launch of IPO pending market conditions |
IPO Structure
- The IPO will feature a fresh issue of ₹3,750 crore.
- An offer for sale (OFS) of up to 182.3 million shares will also be included.
- There are indications that the fresh issue could be increased to ₹4,500 crore, potentially raising the total IPO size to over ₹12,000 crore (approximately $1.42 billion).
Timeline
- Swiggy is preparing to launch its IPO in November 2024, although this timeline may shift based on market conditions.
Regulatory Approval
- The company received approval from the Securities and Exchange Board of India (SEBI) on September 24, 2024, after filing its IPO documents confidentially.
Competitive Landscape
Swiggy operates in a competitive environment alongside other players such as Zomato-owned Blinkit, Zepto, and Tata-owned BigBasket.
As Swiggy moves towards its IPO, Zomato is also exploring fundraising through the Qualified Institutional Placement (QIP) route, highlighting the dynamic nature of the food delivery sector.
Financial Backing and Management
- Key Investors:
- Major investors in Swiggy include Prosus (32%), SoftBank (8%), and Accel (6%), among others like Tencent and Qatar Investment Authority.
- Book-Running Lead Managers:
- The IPO’s book-running lead managers include Kotak Mahindra Capital Company, Citigroup Global Markets India Private Ltd, Jefferies India Private Ltd, and Avendus Capital Private Ltd.
Market Sentiment and Expectations
The upcoming IPO is generating significant interest among investors as bids have already started coming in from anchor investors.
Analysts are optimistic about Swiggy’s potential to capture a larger market share in the food delivery space while expanding its services beyond food into grocery delivery.
Bottom Line
Swiggy upcoming IPO represents a significant milestone for the company as it seeks to capitalize on its growth trajectory in India’s booming food delivery market. With strong backing from major investors and a robust valuation target.
Swiggy aims to solidify its position as a leader in the industry while providing investors with an opportunity to participate in its future growth. As November approaches, all eyes will be on Swiggy as it prepares for this pivotal moment in its journey.
