Swiggy receives Sebi approval for $1.25 billion IPO

NEW DELHI: Food and grocery delivery platform Swiggy has received nod from the Securities and Exchange Board of India (Sebi) for its $1.25 billion initial public offering (IPO), according to The Economic Times citing sources familiar with the matter.
The IPO aims to raise Rs 3,750 crore ($450 million) in fresh capital, accompanied by an offer-for-sale (OFS) component amounting to Rs 6,664 crore ($800 million), with bankers indicating that the size of the offering may be increased prior to the launch.
Prosus, holding a 33% stake as Swiggy's largest shareholder, and SoftBank are expected to sell a portion of their holdings through the OFS. Other prominent shareholders include Accel, Elevation Capital, Meituan, Tencent, Norwest Venture Partners, DST Global, Coatue, Invesco, and GIC.
The Bengaluru-based company had initially submitted its draft papers to the market regulator in April this year, via the confidential filing route.
The 'pre-filing' route, introduced by SEBI in 2022, allows companies to maintain confidentiality regarding preliminary filing details and offers greater flexibility in determining the issue size, with the option to adjust the number of fresh shares proposed by up to 50% before filing the updated DRHP.
Swiggy is now required to file an updated draft red herring prospectus (DRHP) with the watchdog followed by a 21-day window for public feedback before the IPO launch.
Swiggy reported revenue of Rs 5,476 crore and a loss of Rs 1,600 crore in the first three quarters of FY24. Meanwhile, its primary competitor Zomato generated revenue of Rs 12,114 crore for the year ended March 31, 2024, and achieved profitability with a net profit of Rs 351 crore during the same period.
Zomato successfully raised Rs 9,375 crore through its IPO in July 2021, and its stock has surged 192% over the past year, outperforming the Nifty's 32% gain.