Swiggy sets IPO price at Rs 390 at upper end, to launch $1.35 billion public issue in early November

Swiggy's IPO includes an upsized primary component of approximately Rs 4,500 crore, while the offer for sale (OFS) component has been adjusted to accommodate investor interest and exit strategies.

Swiggy Ltd is believed to have set the price of its upcoming mega IPO at Rs 390 at the upper end of the band, according to a Bloomberg report, which cited unidentified sources. Food delivery giant Swiggy, supported by Prosus and SoftBank, plans to open its initial public offering for bids from 6 to 8 November, aiming to raise as much as $1.35 billion (about Rs 11,700 crore) in a highly anticipated listing, said the Bloomberg report.

Earlier, over the weekend, Moneycontrol reported that Swiggy IPO will be open for subscription during 6-8 November, with the anchor book portion slated for 5 November. Swiggy is targeting an IPO valuation of around $11.3 billion at the top of its price band, marking one of the biggest IPOs by a private Indian company this year.

According to the Moneycontrol report, Swiggy's IPO includes an upsized primary component of approximately Rs 4,500 crore, while the offer for sale (OFS) component has been adjusted to accommodate investor interest and exit strategies. Its draft red herring prospectus showed that Swiggy initially listed a fresh issue component of Rs 3,750 crore along with an OFS of up to 182.3 million equity shares.

The IPO, if successful, will position Swiggy alongside some of India’s largest public listings, including the record-breaking Rs 27,856 crore ($3.3 billion) Hyundai Motor India IPO earlier this month. However, recent IPOs from giants like Hyundai, Paytm, and LIC have seen challenging debuts, a factor likely to keep Swiggy investors cautious.

Founded in 2014, Swiggy currently partners with over 200,000 restaurants across India and competes with Zomato-owned Blinkit, Zepto, and Tata-owned BigBasket in the quick commerce sector. Swiggy’s primary food delivery service and its quick-commerce platform, Instamart, form the company’s core businesses. The IPO would make Swiggy one of the latest in a wave of Indian tech unicorns going public, as investors show strong interest in India’s high-growth sectors.

The Swiggy IPO is being led by Citi, JP Morgan, Kotak Mahindra Capital, Jefferies, ICICI Securities, Avendus Capital, and Bofa Securities, with legal counsel provided by Cyril Amarchand Mangaldas. In September, Swiggy secured SEBI’s approval for its listing under India’s recently introduced confidential IPO filing process.

This allows companies to keep strategic and financial information private until they finalise IPO details, a route taken to prevent sensitive data exposure to competitors.

Swiggy's competitor Zomato, which launched its IPO in July 2021 at Rs 9,375 crore, has seen its stock surge by over 136 percent in the past year, highlighting the market’s appetite for high-growth food-tech platforms.