Swiggy, as per its latest updated DRHP submitted to SEBI, is going for a massive ₹10,250 crore (~$1.25B), making it one of the biggest in the country. The issue includes a fresh issue component of ₹3750 crore while an OFS (offer for sale) component worth ₹6500 crore. Several of Swiggy’s biggest investors are expected to make a decent payout from the IPO.
Based on the noise from secondaries market, several large buyers seem to acquiring Swiggy shares at a $9-$9.3B valuation, reports MoneyControl. Swiggy’s IPO size has gradually increased over time, with first news of a ₹3750 crore IPO coming in November of last year. The size then increased to ₹5000 crore that included an OFS component. That component has now further increased, signalling market confidence in Swiggy to pull of perhaps India’s biggest tech/startup IPO on history.
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India’s food delivery market, which could reach ₹2Lac crore by 2030 is pretty much a duopoly, wherein Zomato and Swiggy together command over 90% market share. Zomato was listed back in 2021, and has been on a high tide ride for the past 12-15 months, with its current market cap reaching near $30Bn. India’s stock market in general has been outperforming global benchmarks by some margin, which however, has also sent out alarm bells with market regulator suggesting huge losses for retail investors.
Investors like Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will sell shares and reduce their ownership in the company. The Offer For Sale (OFS) would comprise 18.53 crore shares. Swiggy is additionally looking to do a pre-IPO round as well, which if happens, would result in an adjustment of the fresh issue size of the public market IPO.
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