Swiggy IPO: Price Band, Key Dates, and What Investors Need to Know

Swiggy, one of India’s leading food and grocery delivery giants, is gearing up to enter the Indian stock market with a highly anticipated initial public offering (IPO) set to open for public subscription on November 6, 2023. With a target to raise ₹11,300 crore, Swiggy’s IPO price band has been set between ₹371 and ₹390 per share, according to recent reports. The public bidding period will close on November 8, while anchor investors will have an exclusive one-day bidding session on November 5.

Swiggy IPO Breakdown: Fresh Issue and Offer for Sale (OFS)

The Swiggy IPO comprises two parts: a fresh issue and an offer for sale (OFS) by existing shareholders. The fresh issue of shares will bring in ₹4,500 crore, while the OFS portion, involving the sale of shares by early investors, is set to raise ₹6,800 crore. Some notable stakeholders participating in the OFS include Accel India IV, Alpha Wave Ventures, DST EuroAsia, and Tencent Cloud Europe. Swiggy’s early investors, including Accel, Elevation Capital, and Norwest Ventures, could see returns of up to 35 times their initial investment, though SoftBank is expected to retain its stake in the company.

How Swiggy Plans to Use IPO Funds

Swiggy has outlined a strategic plan to utilize the fresh capital raised through its IPO:

• Debt Reduction: ₹137.41 crore will go towards paying off debts for Scootsy, Swiggy’s quick commerce subsidiary.
• Dark Store Expansion: Swiggy has allocated ₹982.40 crore to scale Scootsy’s dark store network, with ₹559.10 crore designated for setting up new stores and ₹423.30 crore earmarked for lease or licensing fees.
• Technology and Infrastructure: ₹586.20 crore will be invested in Swiggy’s technology infrastructure, improving cloud computing capabilities and operational efficiency.
• Brand Marketing: ₹929.50 crore is planned for brand promotions and business marketing to boost Swiggy’s reach and reputation.
• Corporate Growth and Acquisitions: Funds will also be allocated toward general corporate purposes, including potential acquisitions.

Swiggy’s Growth and Market Valuation

Since its founding in 2014, Swiggy has grown to become one of the most valuable digital consumer brands in India. As of April 2023, Swiggy was valued at close to $13 billion, with an annual revenue of $1.09 billion reported in March 2023. The company currently employs more than 4,700 people and has continued to expand in the highly competitive food delivery and quick commerce sectors.

SEBI Approval and IPO Filing Process

Swiggy’s journey toward going public included a multi-step regulatory process. In April, Swiggy secured shareholder approval to raise approximately ₹10,414 crore, and the company filed a confidential offer document with the Securities and Exchange Board of India (SEBI). By September, SEBI had reviewed Swiggy’s draft and offered feedback, prompting Swiggy to release an updated version that opened for a 21-day public comment period, leading to additional updates.

Swiggy’s IPO Marks a Major Step in India’s Stock Market

Swiggy’s IPO is seen as a significant milestone, as it joins other high-profile digital companies that have gone public in recent years. This offering represents a major opportunity for investors eager to participate in India’s thriving food and grocery delivery market. With its established brand, strong growth trajectory, and strategic investments in technology and infrastructure, Swiggy’s IPO is expected to attract substantial interest from both retail and institutional investors.

Also Read: Swiggy Instamart Introduces New "Shopping List" Feature Following User Feedback on Social Media

By entering the Indian stock market, Swiggy aims to build on its success and solidify its leadership in the digital consumer space, further expanding its influence in the country’s growing quick commerce and food delivery sectors.