NEW DELHI: Swiggy, the food delivery and quick-commerce giant, is set to launch its initial public offering (IPO) on Wednesday, aiming for a valuation of approximately $11.3 billion.
The public subscription period for Swiggy’s initial public offering (IPO) will run from November 6 to November 8.
Swiggy IPO subscription details and pricing
The food delivery giant has set a share price range between Rs 371 and Rs 390 for its first public offering. Swiggy is expected to finalise the basis of IPO share allotment by November 11, with shares being credited to the demat accounts of successful bidders by November 12.
Earlier commenting on the pricing, Swiggy Food Marketplace CEO Rohit Kapoor said, “We feel we have priced it right and we are looking forward to the next few days.”
“Our pricing is in the range of Rs 371-390 which corresponds to a value of about $ 11.3 billion roughly. It is not exact because it depends on where the issue actually clears at the end of the day,” Kapoor told PTI.
Swiggy’s IPO structure and valuation
The Bengaluru-based company plans to raise Rs 11,327 crore through the IPO, which will include a fresh issue of shares worth Rs 4,499 crore and an offer for sale (OFS) totaling Rs 6,828 crore.
At the upper price band, Swiggy’s valuation is expected to reach approximately $11.3 billion (around Rs 95,000 crore). By comparison, competitor Zomato, which went public in July 2021, currently has a market capitalisation of Rs 2.13 lakh crore.
Allocation of IPO proceeds
As detailed in the IPO documents, Swiggy plans to use Rs 137.41 crore from the proceeds to repay debt for its subsidiary, Scootsy.
Additionally, Swiggy plans to invest Rs 982.40 crore in expanding Scootsy’s Dark Store network within the quick commerce sector. Of this amount, Rs 559.10 crore will be used to establish Dark Stores, while Rs 423.30 crore will go toward lease or license expenses.
Swiggy also intends to allocate Rs 586.20 crore for enhancing its technology and cloud infrastructure, Rs 929.50 crore for brand marketing and promotional activities, and additional funds for inorganic growth opportunities and general corporate purposes.
Swiggy’s valuation and market speculation
Addressing speculation about Swiggy’s valuation, Kapoor explained that no actual reduction has occurred, emphasising that true valuation is established only during actual transactions.
“This is all speculation in the media on what the value is. So the fact of the matter is, the value has not gone up or down. The value is exactly where it is supposed to be… I just want to set clearly on record that there has been no lowering of valuation per se. There was a discovery process and at the end of it, this is the price that we collectively feel very good about,” he added.
Previous profit and loss
Established in 2014, Swiggy reported revenue of Rs 3,310.11 crore, whilst experiencing a net loss of Rs 611.1 crore for the quarter ending June 2024, an improvement from Rs 564 crore in the corresponding period last year.
For the financial year concluding March 31, 2024, the organisation’s net loss decreased from Rs 4,179.31 crore to Rs 2,350.24 crore, suggesting improved financial performance.