Swiggy sets IPO price at Rs 390; issue to open after Nov 6

Kotak Mahindra Capital Company, Jefferies India Private Ltd, Avendus Capital and Citigroup Global Markets India are the book-running lead managers.
Foodtech company Swiggy has set the price for its upcoming initial public offering (IPO) at Rs 390 at the upper end of the band, sources told this newspaper.
Foodtech company Swiggy has set the price for its upcoming initial public offering (IPO) at Rs 390 at the upper end of the band, sources told this newspaper.(Photo | Express)
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BENGALURU: Foodtech company Swiggy has set the price for its upcoming initial public offering (IPO) at Rs 390 at the upper end of the band, sources told this newspaper.

Also, the IPO issue might open for subscription after November 6. The SoftBank-backed company’s valuation will stand at 11.3 billion dollars at the upper end of the price band.

Last week, TNIE reported that the food delivery platform, which was earlier targeting a 15 billion dollars valuation, planned to cut its valuation target to 12.5 billion- 13.5 billion dollars due to market volatility.

In September, the company filed its updated DRHP (draft red herring prospectus) and according to that, the proposed IPO will comprise a fresh issue of equity shares valued at Rs 3,750 crore and the sale of 18.52 crore existing shareholders’ equity shares and this will be through an offer-for-sale.

Kotak Mahindra Capital Company, Jefferies India Private Ltd, Avendus Capital and Citigroup Global Markets India are the book-running lead managers.

Earlier this month, US asset manager Invesco raised Swiggy’s valuation to about 13.3 billion dollars. In its disclosure with the US SEC (Securities Exchange Commission), Invesco’s Developing Markets Fund said it valued 28,844 shares at 237 million dollars as of July 2024. Invesco holds a 2 per cent stake in the company.

In 2021, its competitor Zomato launched its IPO at Rs 9,375 crore. Swiggy’s annual revenue as on March 31, 2024, stood at Rs 11,600 crore. In July this year, it announced the fifth ESOP (employee stock ownership plan) liquidity programme.

This is the fifth liquidity event for Swiggy since 2018, and the third consecutive event after July 2022 and 2023. So far, the company has cumulatively enabled over Rs 1,000 crore of ESOPs liquidity over the five events, benefitting over 3,200 employees, the company said.

Last week, the food delivery platform introduced ‘Swiggy Seal’, an initiative aimed at raising hygiene and food quality standards across lakhs of restaurant partners on its platform. Currently live in Pune, Swiggy said it will be gradually scaled up over November, eventually covering over 650 cities.

Valuation at 11.3 billion dollars

Valuation will stand at 11.3 billion dollars at the upper end of price band.Last week, TNIE reported the the company, earlier targeting a 15 billion dollars valuation, planned to cut valuation target to 12.5 billion- 13.5 billion dollars.

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