Swiggy's much-anticipated IPO is expected to launch in early November, with reports suggesting a likely opening for public subscription on November 6 and closure by November 8.
The food delivery platform aims to raise around ₹11,300 crore through the issue, which will include an offer for sale (OFS) valued at ₹6,800 crore and a fresh equity issuance of ₹4,500 crore.
Swiggy's valuation for the IPO is pegged at $11.2 billion, marking a 25% reduction from its original target of $15 billion due to volatile market conditions and the lukewarm IPO reception for Hyundai’s India arm. BT was unable to independently verify these details.
The company intends to channel the funds raised into technology, cloud infrastructure, and expanding its presence through its subsidiary, Scootsy, as well as branding and business promotion over the next four to five years.
Additionally, BlackRock and the Canada Pension Plan Investment Board (CPPIB) are reportedly among the major investors expected to participate, making Swiggy’s IPO one of the largest public issues of the year.
Swiggy's primary competitor, Zomato, had launched its own IPO in 2021 and has since focused on achieving profitability.
Analysts anticipate a similar strategy for Swiggy as it works towards EBITDA positivity, likely by curtailing promotional and advertising expenses.
“If we look back, Zomato quickly shifted its focus on improving profitability post-IPO, which has paid off well. We expect Swiggy to do the same,” Atish Matlawala, Senior Fundamental Analyst at SSJ Finance & Securities, was quoted as saying in an ET report.
As it prepares for listing, Swiggy, with investments from prominent backers such as Prosus, SoftBank, and Accel, will face off with not only Zomato but also other players in the quick commerce space, including Zomato-owned Blinkit, Zepto, and Tata's BigBasket.
The IPO process received SEBI approval on September 24, following Swiggy's confidential filing earlier this year. Under SEBI's confidential filing route, the company submitted two drafts for review, one in response to SEBI’s comments and another open to public scrutiny for 21 days.
This regulatory route, introduced in 2022, permits companies to keep initial filing details private, minimizing competitive exposure. Swiggy’s public debut follows the path of direct-to-home player Tata Play, which had also pursued confidential filings before shelving its IPO plans.