Swiggy IPO Increases Primary Fundraise to ₹4,499 Crore, Reduces Secondary Share Sale

On Tuesday, Swiggy, the food and grocery delivery service filed a red herring prospectus with the market regulator for its initial public offering which will raise ₹11,300 crore.

The company has reportedly increased its primary fund raise to ₹4,499 crore by way of fresh issuance, from the originally planned ₹3,750 crore. Swiggy will now offer 175.1 million shares in its OFS segment-down from the originally planned 185.3 million, this will enable existing investors to sell and reduce stakes.

Bengaluru-based food ordering company, Swiggy, is going to open its IPO price band tomorrow at a share price of ₹371 and ₹390. Swiggy is likely to touch an estimated valuation of $11.3 billion at the upper price limit. Prosus has reduced its stake by 109.1 million shares from 118.2 million.

At the end of Tuesday, the BSE market cap of Zomato stood at ₹2.22 lakh crore, or around $26.5 billion. In the quick commerce space, Blinkit, owned by Zomato, has emerged as a leader against Swiggy's Instamart.

Swiggy IPO will also expand its investment in quick commerce by 20%. The company will allot ₹1,179 crore in its draft Red Herring Prospectus. This will come from the total of ₹982 crore proposed. Here, it plans to use ₹755.4 crore to scale up the dark store network, while ₹423.3 crore would go towards lease and licensing these warehouses.

This will take Swiggy's dark store count to 741, which covers around 2.59 million square feet. As of the end of June quarter, Instamart had 557 dark stores, whereas Blinkit stood at 639; as of September-end, Swiggy counted 605 dark stores while Blinkit's had increased to 791.

A portion of their equity in OFS will be sold to early investors like Accel, Elevation Capital, and Norwest Venture Partners. The IPO will also see the selling of shares by the founding team Sriharsha Majety, Rahul Jaimini, and Nandan Reddy.

According to the RHP, Meituan, DST Global, and Norwest Venture Partners have recently sold shares worth $209 million, $172 million, and $46 million, respectively, in pre-IPO transactions.