Food delivery giant Swiggy Ltd has raised Rs 5,085 crore from anchor investors ahead of its initial public offering (IPO), which opens on Wednesday.
Marquee funds who participated in the anchor round include Kotak MF, ICICI Prudential MF, Fidelity, Nomura, Axis MF, HDFC Life, ICICI Pru Life, Invesco, HSBC, Citigroup, Bofa Securities, Bandhan Multi Cap, Tata Large Cap, Societe Generale, Avendus, Tata Large Cap, SBI MF among others.
The issue comprises a fresh equity sale of Rs 4,499 crore with an offer for sale (OFS) for 17,50,87,963 equity shares.
The company has fixed the price band at Rs 371-390 per share, where investors can bid for 38 shares in one lot and in multiples thereafter.
Ahead of the issue opening, the company’s shares were trading with a GMP of Rs 12 in the unlisted market. This indicates a marginal premium of 3% over the issue price.
The food delivery company proposes to use the IPO proceeds for investment in its material subsidiary Scootsy, investment in technology and cloud infrastructure and also brand marketing and business promotion. This will be done over a four to five year period.Swiggy competes with Zomato in India’s online restaurant and food deliveries sector, and both have made major bets on a boom in “quick-commerce,” where groceries and other products are delivered in 10 minutes.The company has incurred net losses in each year since incorporation and has negative cash flows from operations.
For the financial year ended March 2024, the loss stood at Rs 2,350 crore versus Rs 4,179 crore in FY23 and Rs 3,628 crore in FY22. Revenue from operations in the said period, however, doubled to Rs 11,247 crore in FY24 from Rs 5,704 crore in FY22.
Kotak Mahindra Capital, Citigroup Global Markets, Jefferies India and Avendus Capital are the book running lead managers, while the registrar to the issue is Link Intime India.