Prosus and Softbank backed Swiggy is likely to launch its mega IPO for public subscription between November 6 to November 8, multiple sources in the know told Moneycontrol on the condition of anonymity, adding that the anchor book portion is scheduled for November 5.
"At the top end of the price band, Swiggy is targeting an IPO valuation of around$11.3 bn. The primary component of the issue has been upsized to around Rs 4500 crore and the offer for sale component has also been tweaked depending on investor participation ," said one of the persons above.
Two other persons confirmed the above launch dates and added that the combined IPO size is likely to be between Rs 11,700 crore to Rs 11,800 crore.
Moneycontrol has sent an email query and could not elicit an immediate comment from Swiggy.
On October 20, Moneycontrol had reported that the top food and grocery delivery platform is targeting a valuation in the range of $11.7 billion to $12.7 billion and plans to launch its highly anticipated IPO in early November.
The report had added that the primary component of the issue is likely to be upsized to Rs 4,500 crore ( under Sebi norms, the maximum permissible increase for a primary issue is 20 per cent) and depending on valuations and investor exit strategies, changes are expected in the OFS component too.
As per the updated draft red herring prospectus - I of Swiggy, its IPO had a fresh issue component of Rs 3,750 crore and an offer for sale (OFS) of up to 182,286,265 equity shares.
Swiggy and its platform Instamart compete with the likes of Zomato-owned Blinkit, Zepto and Tata-owned BigBasket. While Swiggy prepares for its IPO, rival Zomato is looking to raise funds via the QIP route.
Back in July 2021, Swiggy's arch rival Zomato floated an IPO with a size of Rs 9,375 crore and listed its shares on the domestic bourses. The Zomato stock has soared by as much as 136.68 per cent in the last year.
Recently South Korean auto giant Hyundai listed its Indian arm after raising Rs 27,856 crore, the largest public issue ever in the country, which had a disappointing debut. Two other big IPO's, Paytm ( issue size of Rs 18,300 crore ) and LIC ( issue size of Rs 21,000 crore) , also had the same experience on listing day
Prosus (32 percent), SoftBank (8 percent) and 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 also shareholders in the company. Citi, JP Morgan, Kotak Mahindra Capital, Jefferies, ICICI Securities, Avendus Capital and Bofa Securities are the investment banks advising on the Swiggy IPO with law firm Cyril Amarchand Mangaldas, the company counsel.
On September 24, Swiggy received the approval from market regulator Securities and Exchange Board of India (SEBI) after its confidential filing of draft share sale documents.
Under the confidential filing route, the Sebi nod is followed by the filing of two updated DRHPs (draft red herring prospectus), one responding to Sebi comments and the other seeking public comments for 21 days.
SEBI introduced the concept of confidential filings in November 2022. Common in US markets, under this route, the issuer company is allowed to keep its offer document private by the pre-filing route until it firms up its IPO plan. This is typically to avoid rivals getting access to any strategic info or financials which are deemed sensitive by the issuer. The direct-to-home platform, Tata Play (formerly Tata Sky), was the first firm to file confidential papers with SEBI for an IPO. It later dropped its listing plans.
Also Read: Madhuri Dixit goes dhak dhak for Swiggy, snaps up shares ahead of IPO
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
