Swiggy IPO: Price band set at Rs 371-390 a share for mega issue

With this the total issue size will be around Rs 11327.43 crore and the total mcap of the firm will be at around Rs 87299 crore.

Swiggy Ltd set a price band of Rs 371-390 a share for its initial public offering that will open for subscription on November 6 and close on November 8.

The anchor book will open on November 5, basis of allotment and initiation of refunds will be on November 11, credit of equity shares will be on November 12 and the stock will list on exchanges on November 13.

The IPO consists of a fresh issue of Rs 4,499 crore and an offer-for-sale of 17.5 crore by several existing shareholders and promoters. On the upper price band of the issue price, the OFS will be valued at Rs 6,828 crore. With this the total issue size will be around Rs 11,327.43 crore and the total mcap of the firm will be at around Rs 87,299 crore.

The company, backed by several global and domestic institutional investors, has increased the fresh issue size from Rs 3,750 crore and reduced the offer-for-sale component from 18.5 crore shares earlier.

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 will be the selling shareholders in the offer-for-sale of the professionally managed company.

MIH India Food Holdings, an affiliate of Prosus, is the largest shareholder in Swiggy, holding a 30.93 percent stake, followed by SoftBank Group's SVF II SONGBIRD (DE) LLC, which holds a 7.75 percent stake. Accel India owns a 4.71 percent stake, and Tencent Cloud holds a 3.64 percent stake.

Sriharsha Majety (Managing Director & Group CEO) and Lakshmi Nandan Reddy Obul (Wholetime Director - Head of Innovation), co-founders of the company, hold 5.36 percent and 1.75 percent stakes, respectively.

The company will utilize Rs 1,343.5 crore out of net fresh issue proceeds for investment in its subsidiary Scootsy, and Rs 703.4 crore for investment in technology and cloud infrastructure. Furthermore, Rs 1,115.3 crore will be spent on brand marketing and business promotion expenses, with the remainder allocated for inorganic growth and general corporate purposes.

On the financial front, the company has narrowed its loss for the fiscal year 2024 to Rs 2,350.2 crore, down from Rs 4,179.3 crore in the previous year, while revenue from operations increased significantly by 36 percent to Rs 11,247.4 crore, up from Rs 8,264.6 crore during the same period.

For the quarter ended June 2024, the company reported a loss of Rs 611 crore, widening from a loss of Rs 564 crore in the same period of the previous fiscal year. However, revenue in this period surged by 35 percent to Rs 3,222.2 crore.

Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities India, and ICICI Securities are acting as merchant bankers for the issue.