Swiggy IPO ups primary fundraise to Rs 4,499 cr, cuts secondary share sale

Food and grocery delivery company expected to announce its IPO price band on Wednesday

Swiggy, the food and grocery delivery company, on Tuesday filed a red herring prospectus (RHP) with the market regulator for its Rs 11,300-crore initial public offering (IPO).

 

The company reportedly increased the targeted primary fundraising through issuance of new shares to Rs 4,499 crore, from its earlier plan of Rs 3,750 crore. In the offer for sale (OFS) window, the company will sell 175.1 million shares, according to the Economic Times. The company earlier planned to sell 185.3 million shares. In an OFS, existing investors sell part of their stake.

 

Bengaluru-based Swiggy is expected to announce its IPO price band on Wednesday. The firm would issue shares in the price band of Rs 371-390 per share, according to the media reports. At the upper end, the firm’s valuation would be $11.3 billion.

 

 

Prosus, the largest investor in Swiggy, has trimmed its stake to 109.1 million shares from 118.2 million.

 

Swiggy plans to allocate 20 per cent higher capital to its quick commerce business, at Rs 1,179 crore, according to the RHP. This is up from Rs 982 crore mentioned in the draft RHP. 

 

The company will invest Rs 755.4 crore in expanding its network of dark stores or warehouses. The lease and licence payments for dark stores would amount to Rs 423.3 crore. The investment will take Swiggy’s dark store count to 741, covering about 2.59 million square feet. At the end of the June quarter, Swiggy Instamart, the company’s quick commerce business, had 557 dark stores. Rival Blinkit had 639. In September, Swiggy had 605 dark stores and Blinkit’s 791. quarter

 

Early investors such as Accel, Elevation Capital and Norwest Venture Partners will divest part of their holdings in Swiggy in the OFS, according to media reports. Swiggy’s founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy will sell part of their stakes in the public offering.

 

In pre-IPO deals, Meituan, DST Global and Norwest Venture Partners have sold shares worth $209 million, $172 million and $46 million, respectively, as per the RHP.