Swiggy IPO to open on November 6: Food delivery major raises Rs 5,085 crore via anchor book

Swiggy

Swiggy, the food delivery major, has garnered healthy interest from institutional investors, raising Rs 5,085.02 crore via the anchor book launched on November 5. This fund raising is ahead of its IPO opening for all types of investors on November 6.

The company targets to raise Rs 11,327.43 crore through its initial share sale, which is the second biggest IPO fund raise in the current year after Hyundai Motor India (Rs 27,870 crore). The IPO is a mix of fresh issuance of equity shares worth Rs 4,499 crore, and an offer-for-sale of 17.5 crore shares worth Rs 6,828.43 crore at the upper end of price band of Rs 371-390 per share.

Bengaluru-based Swiggy in its filing to exchanges on Tuesday said it has finalised allocation of 13,03,85,211 equity shares to anchor investors at a price of Rs 390 per share.

New World Fund, Fidelity, Omnis Portfolio Investments, Nomura, Government Pension Fund Global, PGGM World Equity, Blackrock, Carmignac, Eastspring Investments, Citigroup, TOCU Europe, Integrated Core Strategies, CLSA, Matthews Asia Funds, and Societe Generale are the marquee global investors invested in the company via anchor book.

Domestic institutional investors participated in the anchor book included ICICI Prudential Mutual Fund, Kotak Mahindra AMC, SBI Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Trustee, 360 ONE, Mirae Asset, Nippon Life India, Bandhan Mutual Fund, Invesco India, Motilal Oswal Mutual Fund, Sundaram MF, Tata MF, UTI Mutual Fund, DSP India Fund, Ashoka Whiteoak, Baroda PNB Paribas, Helios MF, and Avendus.

"Out of the total allocation of 13.03 crore equity shares to the anchor investors, 5.3 crore shares were allocated to 19 domestic mutual funds, which have applied through a total of 69 schemes," Swiggy said.

Several insurance companies like SBI Life, HDFC Life, ICICI Prudential, Kotak Mahindra Life, Aditya Birla Sun Life, Bharti Axa Life, Edelweiss Life, Tata AIA Life, Reliance Nippon Life, Max Life, and Canara HSBC Life also became shareholders in the company by investing through anchor book.

Accel India, Apoletto Asia, Alpha Wave Ventures, Coatue PE Asia, DST EuroAsia, Elevation Capital, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners, and Tencent Cloud Europe are the selling shareholders in the offer-for-sale of the company.

Founded in 2014 by Sriharsha Majety and Lakshmi Nandan Reddy Obul, the food delivery, grocery and household items platform intends to utilise Rs 164.8 crore out of net fresh issue proceeds for repaying debt of its subsidiary Scootsy. Furthermore, it will spend Rs 1,178.7 crore for expansion of Dark Store network, Rs 703.4 crore for investment in technology and cloud infrastructure, Rs 1,115.3 crore for brand marketing and business promotion expenses, and the remainder funds for inorganic growth through unidentified acquisitions and general corporate purposes.

Zomato, which has been trading on the bourses since July 2021, is the only competitor to Swiggy in the listed space. The market participants can start buying and selling Swiggy shares on the BSE and NSE, effective November 13.

The Swiggy IPO shares traded at around 3-5 percent premium in the grey market, an unofficial market for trading in IPO shares till the listing, the market observers said.

Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities, and ICICI Securities are handling the issue as book running lead managers.