Swiggy Sets IPO Price At Rs 390, Aims To Raise Rs 11,300 Cr

Swiggy is gearing up for its long-awaited initial public offering (IPO) with a price band set between Rs 371 and Rs 390 per share, with the upper limit likely being the final price, as media reported. Scheduled for launch from November 6 to 8, the IPO aims to raise up to Rs 11,300 crore.

Backed by investors like Prosus, SoftBank, and Accel, Swiggy was valued at USD 9.3 billion in August 2023. The Bengaluru-based food delivery giant confidentially submitted its IPO proposal to Sebi on 30 April, keeping financials and operational details private until receiving regulatory clearance in September.

The IPO's structure includes a fresh issue component, expanded to Rs 4,500 crore, with adjustments made to the offer-for-sale (OFS) to accommodate investor exits. Originally, the fresh issue was set at Rs 3,750 crore alongside an OFS of 182.3 million equity shares, according to its draft red herring prospectus (RHP). A final RHP will be submitted before the IPO begins.

Proceeds from the IPO will help fund Swiggy's expansion plans, including investment in its quick commerce subsidiary, Scootsy, and enhancement of its dark store network. Additionally, funds will support technology and cloud infrastructure upgrades.

With over 200,000 partner restaurants across 580+ cities, Swiggy competes directly with Zomato, whose IPO in July 2021 raised Rs 9,375 crore. However, recent IPOs by major players like Hyundai, Paytm, and LIC have seen mixed market responses.

Leading banks such as Citi, JP Morgan, Kotak Mahindra Capital, and Jefferies are managing Swiggy’s IPO, with Cyril Amarchand Mangaldas providing legal counsel. A successful listing will place Swiggy among India’s largest IPOs, further consolidating its position in the competitive food delivery market.