Swiggy's IPO plan includes Rs 5,000 cr fresh issue, exceeding initial aim

The planned amount exceeds the initial Rs 3,750 crore the company had aimed to raise, in addition to a Rs 6,664 crore offer for sale

Food and grocery delivery firm Swiggy is preparing to seek approval from its shareholders for a fresh issue of Rs 5,000 crore as part of its upcoming IPO. This proposal will be discussed at an extraordinary general meeting (EGM) scheduled for October 3, as detailed in a notice sent to shareholders, according to a report by The Economic Times.

The planned amount exceeds the initial Rs 3,750 crore the company had aimed to raise, in addition to Rs 6,664 crore offer for sale. Swiggy has confidentially submitted its draft prospectus for the IPO to the Securities and Exchange Board of India (Sebi).

 

The final size of the IPO may vary from the amount the company is currently seeking approval for. The board of directors initially approved the public offering in April, paving the way for the company to submit its confidential filing with Sebi.

Last week, Swiggy disclosed its financial performance for the financial year ending March 31, 2024. The company achieved a 36 per cent increase in operating revenue, reaching Rs 11,247 crore, and reduced its net loss to Rs 2,350 crore, marking a 44 per cent decrease from the previous year.

Meanwhile, Zomato reported a revenue of Rs 12,114 crore and achieved a profit of Rs 351 crore for FY24.

In the food delivery sector, Swiggy competes with Zomato, while its quick commerce division, Instamart, faces competition from Zomato-owned Blinkit, Zepto (backed by Nexus Venture Partners), Flipkart Minutes, and Tata Digital's BigBasket.

Ahead of the IPO, there have been several secondary transactions with new investors joining Swiggy’s capitalisation table. The family office of Bollywood icon Amitabh Bachchan acquired a minor stake in Swiggy by purchasing shares from the company's employees and early investors. Motilal Oswal Financial Services chairman Raamdeo Agrawal and automobile materials manufacturer Hindustan Composites have also secured stakes in Swiggy.