The way has been cleared for Swiggy’s IPO. SEBI has approved the new (updated) draft of the company. Swiggy’s IPO will be one of the largest IPOs in the country. The size of the IPO of the food delivery company can be Rs 10,414 crore. In this the company will issue new shares. Apart from this, OFS i.e. Offer for Sale will also be included in this.
IPO size
Swiggy (swiggy) will issue new shares worth Rs 3,750 crore under the IPO. Shares worth about Rs 6,664 crore will be sold under the offer for sale. In this way the size of IPO can be Rs 10,414 crore. The company may increase the issue size by Rs 1,250 crore. With this, the issue size may increase to Rs 11,644 crore.
use of ipo money
The company will gain Rs 3,750 crore through this issue. The company will use this money to repay the loan, expand the quick commerce business and strengthen the Swiggy brand. The company will invest Rs 586 crore on technology and cloud infrastructure. According to the updated draft, Rs 137 crore will be used to repay the loan.
Sale of shares in OFS
Prosus, Accel India, Alpha Wave, Coatue PE Asia, DST, Elevation Capital, Norwest Venture and Tencent will sell their stake in Swiggy. Of these, Prosus alone will sell 11.78 crore shares. This is about 64 percent of OFS.
Investors not selling stake
Softback Vision Fund is among the big investors who will not sell their shares in this OFS. Because of this, a good rise in the shares of Swiggy can be expected after the listing.
swiggy valuation
The final valuation of the company will depend on the price band of the shares in the IPO and other factors. But it is estimated that the valuation of the company will be between 10 to 13 billion dollars. This is less than Zomato’s valuation of about $30 billion.
share price
The company has not yet decided the share price for the IPO. But, in the unofficial market the company’s shares are trading between Rs 330-350. This price may rise as the IPO date approaches.
Also read: Swiggy IPO: What is it about Swiggy that people like Amitabh Bachchan, Madhuri Dixit, Rahul Dravid have invested?
financial performance
Swiggy’s loss widens 8 per cent to Rs 611 crore in Q1FY25. The company’s loss in the same quarter a year ago was Rs 564 crore. The company’s revenue in the June quarter stood at Rs 3,222.2 crore, which is 35 percent more than the same period a year ago.