Swiggy eyes up to $12.7 billion valuation for mega $1.4 billion-plus IPO; launch likely in early November

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

Prosus and Softbank-backed Swiggy is targeting a valuation in the range of $11.7 billion to $12.7 billion as the food and grocery delivery platform gears up to launch its highly anticipated IPO in early November, persons in the know told Moneycontrol on the condition of anonymity.

"Swiggy is currently working with an IPO valuation in the range of $11.7 billion to $12.7 billion and bids have started coming in from anchor investors," said one of the persons.

A second person told Moneycontrol that the firm plans to launch its IPO in early November, within the first fortnight, though timelines could vary later depending on market conditions.

As per the updated draft red herring prospectus - I of Swiggy, its IPO has a fresh issue component of Rs 3,750 crore and an offer for sale (OFS) of up to 182,286,265 equity shares.

According to a third person, the primary component 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.

Eventually, a combined IPO size in excess of Rs 12,000 crore or $1.42 billion is on the cards, the third person added. On September 10, Moneycontrol had first reported that Swiggy was set to increase the size of its IPO.

Also Read: Swiggy IPO: Good for the sector to have multiple players, says Zomato’s Deepinder Goyal

An email query has been sent and Moneycontrol could not get an immediate response from Swiggy. This article will be updated as soon as we hear from the firm.

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.

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.

Also Read: Swiggy's confidential filing for IPO gets Sebi nod, launch likely in November

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 information 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