Food and grocery delivery platform Swiggy Ltd has increased the fresh issue in its upcoming initial public offering (IPO), while the company’s largest shareholder, Prosus, has lowered the number of shares it will be offering to sell. The issue will be open to the public on November 6, closing on November 8, with anchor investor bidding scheduled for November 5.
The Bengaluru-headquartered company, which plans to raise Rs 11,300 crore through its upcoming IPO, now plans to raise Rs 4,499 crore through fresh issue, according to its Red Herring Prospectus it filed with exchanges on Monday.
To be sure, Swiggy was looking to raise nearly Rs 3,750 crore via fresh issue, according to the company’s Draft Red Herring Prospectus filed with SEBI on September 26. Prosus, which owns a 30.95% stake in the company and was looking to offload nearly 118.3 million shares, is now selling 109.1 million shares in the IPO.
In total, the investors are selling shares worth Rs 6,800 crore under OFS. Other investors participating in the OFS include Accel, Apoletto Asia, Alpha Wave Ventures, Coatue PE, DST Global, Elevation Capital, Inspired Elite, Norwest Venture Partners, and Tencent.
SoftBank, which is another important investor of Swiggy, is holding its stake in the company.
Founded in 2014, Swiggy was valued at nearly $13 billion by one of its investors in April. However, the company has reduced its valuation and is now aiming for an IPO valuation of about $11.3 billion at the upper end of the price band. The price band is expected to be set between Rs 371 and Rs 390 per share.
According to the IPO documents, Swiggy plans to use Rs 137.41 crore from the fresh issue to repay debt for its subsidiary Scootsy. Additionally, the company has earmarked Rs 982.40 crore for expanding Scootsy's dark store network in the quick commerce sector, with Rs 559.10 crore dedicated to setting up new dark stores and Rs 423.30 crore set aside for lease or licence costs.
Swiggy also plans to invest Rs 586.20 crore in technology and cloud infrastructure, Rs 929.50 crore in brand marketing and business promotion, and allocate funds for inorganic growth and general corporate purposes.