SoftBank-backed Swiggy's Rs 11,000-cr IPO key details revealed; check here

Swiggy IPO: The SoftBank-backed initial public offering (IPO) of online food delivery provider Swiggy is set to open for public subscription on Wednesday, November 6, 2024. At the upper end, the company seeks to raise Rs 11,327.43 crore by offering a fresh issue of 115,358,974 shares, and an offer for sale of 175,087,863 shares with a face value of Re 1 apiece.

 

Bidding for anchor investors for Swiggy IPO is scheduled to take place on Tuesday, November 5, 2024, the company stated in the Red Herring Prospectus.

 

Swiggy IPO will be available at a price band of Rs 371-390, with a lot size of 38 shares. Investors can bid for a minimum of 38 shares and in multiples thereof. A retail investor would require a minimum of Rs [amount] to bid for one lot, or 38 shares, of the Swiggy IPO. Swiggy added that the public offering includes a reservation of up to 750,000 shares for employees, offered at a discount of Rs 25 to the issue price.

 

 

Swiggy’s unlisted shares commanded a premium on Wednesday, with shares trading at a premium of Rs 25, translating to a GMP of 6.41 per cent against the upper end of the price band in the grey market, as per sources tracking grey market activities.

 

The subscription window for the Swiggy IPO will be open for three days, closing on November 8, 2024. The basis of allotment is expected to be finalized on November 11, 2024. Successful investors can expect shares to be credited to their demat accounts on November 12, 2024. Swiggy shares are set to make their market debut on November 13, 2024, listing on both the BSE and NSE.

 

Link Intime India is the registrar for the public issue.

 

The book-running lead managers for the Swiggy IPO include JP Morgan India, BofA Securities India, Jefferies India, Kotak Mahindra Capital Company, Citigroup Global Markets India, Avendus Capital, and ICICI Securities.

 

In the Red Herring Prospectus, Swiggy outlined that the proceeds from the fresh issue will be used to invest in its material subsidiary, Scootsy, and for the repayment or prepayment, in full or in part, of certain borrowings. Funds will also support expanding its Dark Store network for the quick commerce segment, including setting up new stores and making lease or license payments.

 

Additionally, Swiggy proposes to utilise the proceeds for technology and cloud infrastructure investments, brand marketing, and business promotion to enhance brand awareness and visibility across segments. The company also plans to fund inorganic growth through acquisitions.

 

Swiggy is India's leading food delivery platform, founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. Headquartered in Bengaluru, Karnataka, Swiggy operates in over 500 cities across India, offering delivery services for food, groceries, and other essentials. Backed by prominent investors like SoftBank, Prosus, and Accel Partners, the company has established itself as a pioneer in the food delivery space, connecting customers with local restaurants and stores.