Swiggy's Rs 11,300-crore IPO on Nov 6; price band at Rs 371-390/share

New Delhi: Food and grocery delivery major Swiggy is looking to raise Rs 11,300 crore through its initial public offering (IPO) opening for public subscription on November 6, sources said on Monday.

The shares would be available at a price band of Rs 371 to Rs 390 apiece.

The issue would conclude on November 8 and the bidding for anchor investors will open for a day on November 5, they added.

Swiggy is one of the most valued new-age consumer brands to tap the Indian capital market. The company's Rs 11,300-crore IPO is a combination of fresh issue of shares worth Rs 4,500 crore and an offer for sale (OFS) of Rs 6,800 crore, they added.

Those selling shares in the OFS route are -- Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe B.V.

Early investors like Accel, Elevation Capital and Norwest Ventures are making up to 35 times in returns on the portion they decided to sell. On the other hand, SoftBank continues to stay invested.

Going by the IPO papers, proceeds from the fresh issue to the tune of Rs 137.41 crore will be used for debt payment of subsidiary Scootsy.

Additionally, Rs 982.40 crore will be invested in Scootsy for expanding the Dark Store network in the quick commerce segment, with Rs 559.10 crore allocated for setting up dark stores and Rs 423.30 crore for lease or licence payments.

The company will also invest Rs 586.20 crore in technology and cloud infrastructure, Rs 929.50 crore for brand marketing and business promotion, and funds will be allocated for inorganic growth and general corporate purposes.

Founded in 2014, Swiggy had a valuation of nearly USD 13 billion in April. The company's annual revenue stood at USD 1.09 billion as on March 31, 2023, and has more than 4,700 employees, according to Tracxn, a global startup data platform.

Swiggy's confidential offer document was approved by Sebi in September and following this updated draft papers were filed.

The company filed its offer document on April 30 through the confidential pre-filing route.

Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it. Thereafter, the company going public is required to file an update to the confidential DRHP (UDRHP-I) after incorporating the regulator's comments. This UPDRHP-I is made available for public comments over 21 days.

Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

In April, sources had previously stated that Swiggy received shareholders' approval for an IPO to raise Rs 10,414 crore through issue of fresh equity shares and an offer for sale.

A special resolution was passed at an extraordinary general meeting of Swiggy on April 23, they stated.