 "Swiggy gets shareholder approval for potential $1.2 billion IPO this year")
According to regulatory filings, Swiggy has obtained approval from its shareholders for its initial public offering (IPO). The food and grocery delivery firm intends to raise up to Rs 3,750 crore ($450 million) in fresh capital alongside an offer-for-sale (OFS) segment of up to Rs 6,664 crore ($800 million), as outlined in submissions to the Registrar of Companies.
According to a report in The Economic Times (ET), Swiggy, which has not yet submitted its IPO documents to the Securities and Exchange Board of India (Sebi), aims to raise approximately Rs 750 crore from anchor investors in a pre-IPO round. Swiggy's IPO is among a group of emerging startups preparing to go public this year, joining companies such as omnichannel retailer Firstcry, Ola Electric, and Awfis, among others.
The filing read, "...the consent and approval of the shareholders of the company be and is hereby according to create, issue, offer, allot and/or transfer of its equity shares up to an aggregate of Rs 3,750 crore by way of a fresh issue of equity shares and an offer for sale of such number of equity shares up to an aggregate amount of Rs 6,664 crore by certain existing shareholders..."
The special resolution was approved during an extraordinary general meeting (EGM) of Swiggy's shareholders held on April 23, the ET reported.
Prosus, a company listed in the Netherlands, holds the largest stake in Swiggy, owning 33 per cent of the company, followed by SoftBank. Additional shareholders include Accel, Elevation Capital, Meituan, Norwest Venture Partners, Tencent, DST Global, Qatar Investment Authority, Coatue, Alpha Wave Global, Invesco, Hillhouse Capital Group, and GIC, according to the ET report.
According to data from the Tracxn platform, the company's co-founders Sriharsha Majety, Nandan Reddy, and Rahul Jaimini hold stakes of 4 per cent, 1.6 per cent, and 1.2 per cent, respectively. Jaimini transitioned from his operational role in 2020 to pursue another venture, Pesto Tech.
During the April 23 meeting, Majety and Reddy were appointed as executive directors of the company. Majety assumed the role of managing director and group CEO, while Reddy was appointed as a whole-time director and head of innovation, the ET report stated.