Swiggy files updated DRHP with SEBI for Rs 3,750 crore fresh issue, OFS of 18.53 crore shares

Swiggy IPO

Food tech giant Swiggy has filed its first updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on September 26. The fresh issue component is for Rs 3,750 crore while the offer for sale would comprise 18.53 crore shares.

Assuming the recent price of share purchases at around Rs 350 apiece, the OFS component will be around Rs 6,500 crore.

Investors like Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will sell shares and reduce their ownership in the company to make way for new ones, as people bet on the company’s long-term growth potential and also look for diversification away from Zomato.

Earlier this week, Moneycontrol had reported that Swiggy's confidential DRHP has been approved by Sebi.

India’s food delivery market, which is estimated to grow to Rs 2 lakh crore by 2030, is a duopoly with Swiggy and Zomato together commanding over 90 percent of the food industry.

While Zomato went public in 2021, Swiggy is set to join its rival in the coming months.

Prosus (32 percent), SoftBank (8 percent), Accel (6 percent) are key investors in Swiggy. Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority (QIA), Singapore’s GIC, among several others are other shareholders in the company.

The company was valued at $10.7 billion when it last raised funds in January 2022. However, over the past months, bankers have expressed confidence that Swiggy can list with a market capitalisation/valuation of around $10-13 billion.

Swiggy’s IPO, the prep for which started back in November 2023 at least, is a hot one and has been highly anticipated. Moneycontrol was first to report about Swiggy filing its draft IPO papers with the capital markets regulator, via the confidential route, back on April 26.

Since April, Swiggy has seen increased action in the secondaries market. HNIs and family offices have been buying shares in the company which was valued at $9-9.3 billion during secondary market transactions.