Indian food delivery company Swiggy has been filed its first DRHP with the Security Exchange Board of India on 26th September 2024. A new fresh issue will be worth Rs 3750 crore for the offer for the sale will have comprise crore shares. Considering Stock purchases approximately around Rs 350 each and the OFS component will be aroung Rs 6500 crore.
In order for new investors to buy company’s shares six big investors like Accel, Coatue, Alpha Wave, Elevation, Norwest, and Tencent will be selling some of their shares and reducing their ownership because they are gambling on the company’s long-term growth and similarly are seeking alternatives to diversify from Zomato.
India’s food delivery market is the one that is expected to be a Rs 2 lakh crore market by 2030 with only two operators – Swiggy and Zomato, who have captured more than 90% of the food industry.
Prosus (32 percent), SoftBank (8 percent), and Accel (6 percent) are among the main investors in Swiggy. Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority (QIA), Singapore’s GIC along with other investors are involved in the funding of the company.
Initially, the company had a market value of $10.7 billion when the last fundraising round was conducted in January 2022. Moreover, financial professionals have been optimistic about the fact that the Swiggy listing could be carried out with the market value of $10-13 billion.
Swiggy’s IPO, preparation for which has started at least from November 2023, is a hot one and has been highly anticipated. Moneycontrol was the first to report about the filing of its draft IPO papers by Swiggy with the capital markets regulator while the private route, on April 26th was done secretly.
Since April, the main action on Swiggy’s secondary market has seen increased activity. HNIs and family offices have been purchasing shares in the company, which were valued at $9-9.3 billion during secondary market transactions.