India’s biggest initial public offer is set to hit the floors, with market regulator Sebi approving the draft red herring prospectus of Hyundai Motor‘s Rs 25,000-crore offer of sale.
The much-awaited IPO is expected to be launched in Oct, and follows a series of public offers that have hit the markets recently.
Having received a green light from Sebi, food and grocery delivery company Swiggy is expected to scale up its IPO size to $1.4 billion (around Rs 11,700 crore), making it the fifth-largest issue in the country.
2nd biggest startup IPO after Paytm
Having received a green light from Sebi, food and grocery delivery company Swiggy is expected scale up its IPO size to $1.4 billion (around Rs 11,700 crore), making it the fifth-largest issue in the country.
The Bengaluru-based startup, which had filed draft IPO papers with the markets regulator under the confidential route in April, has received Sebi’s comments and is likely to launch roadshows over the next few days to tap into the stock market boom, sources told TOI.
Swiggy will now need to file an updated draft red herring prospectus with Sebi and a meeting of shareholders is planned in the first week of Oct to upsize the offer size, the sources said. Swiggy’s IPO will be bigger than arch-rival Zomato‘s Rs 9,375-crore issue that was launched in 2021.
Prosus and SoftBank-backed Swiggy will join a batch of startups such as Ola Electric and FirstCry, which have made their debut on the bourses this year. The local IPO market has been on the upswing with a rush of companies gearing up to get listed. With the US Fed cutting rates, overseas flows are expected to go up at a time when the Indian economy is holding firm amid the global slowdown.
While the timing of the issue is not known, Diwali is seen to be a good time for public offers in India. In Aug, 10 companies had raised around Rs 17,047 crore – making it the busiest period for public offerings since May 2022. Zomato’s 2021 IPO, which got a stellar response from investors during launch, had led the new-age IPO frenzy with a clutch of startups including Paytm and Nykaa listing on the bourses during that period.
In its annual report shared with investors earlier this month, which has not been made public, Swiggy said it has narrowed its consolidated losses to Rs 2,350 crore in FY24 from Rs 4,179 crore in FY23. Revenue from operations grew to Rs 11,247 crore during the year from Rs 8,264.6 crore in FY23, recording a year-on-year growth of about 36%.