Swiggy Raises Rs 5,085 Crore Ahead of IPO

New Delhi, Nov 5 (PTI) A day before its initial share-sale opening for public subscription, food delivery and quick-commerce major Swiggy on Tuesday said it has collected Rs 5,085 crore from anchor investors.

Among the investors who were allocated shares are New World Fund Inc, Government Pension Fund Global, Nomura Funds Ireland Public Limited Company, Fidelity Funds, BlackRock, Allianz Global Investors Fund and Schroder International, according to a circular uploaded on BSE's website.

Additionally, ICICI Prudential Mutual Fund (MF), SBI Mutual Fund, HDFC Life Insurance Company Ltd, SBI Life Insurance Co. Ltd and ICICI Prudential Life Insurance Company Ltd too were allotted shares in the anchor round.

This allocation highlights strong demand from both domestic and international institutional investors, reflecting a positive market sentiment towards this IPO.

As per the circular, Swiggy has allotted 13.04 crore shares to 151 funds at Rs 390 apiece. This aggregates the transaction size to Rs 5,085 crore.

Of the 13.04 crore shares allocated to anchor investors, 5.3 crore shares went to 19 domestic mutual funds, distributed across 69 investment schemes.

The Bengaluru-based company's shares will be available for public subscription in the price range of Rs 371 to Rs 390 during November 6-8.

The issue comes amid a series of IPOs in the recent past, including South Korean carmaker Hyundai's mega Rs 28,000-crore issue.

The company is aiming to garner Rs 11,327 crore from the IPO, which will comprise a fresh issue of shares worth Rs 4,499 crore along with an offer for sale (OFS) of Rs 6,828 crore.

The secondary share includes exits or partial exits by venture capital fund Accel India, Tencent Cloud Europe and Alpha Wave Ventures, and the early backers have invested between Rs 11.17 and Rs 178.90 apiece, depending on when they entered the company, as per the disclosures made.

The valuation of Swiggy has been pegged at about USD 11.3 billion (about Rs 95,000 crore) at the upper price band. Rival Zomato, which went public in July 2021, has a market valuation of Rs 2.13 lakh crore.

Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.

Swiggy, founded in 2014, posted a loss of Rs 611 crore in the quarter ended June 2024, narrowing from Rs 564 crore in the same period last year.