Swiggy, the food and grocery delivery giant, has received approval from India’s market regulator SEBI for its planned $1.25 billion IPO, sources told ET. This move reflects the rising interest in new-age companies as India’s consumer market continues to boom.
Swiggy confidentially filed for the IPO in April and now needs to submit an updated draft prospectus (UDRHP). The public will have 21 days to provide feedback on the updated filing before the IPO launch.
The IPO is set to raise ₹3,750 crore ($450 million) in fresh funds, along with an offer-for-sale (OFS) of up to ₹6,664 crore ($800 million). Major investors like Prosus and SoftBank are expected to sell part of their stakes through the OFS.
Swiggy reported ₹5,476 crore in revenue with a loss of ₹1,600 crore in the first three quarters of FY24. Its main rival, Zomato, recorded ₹12,114 crore in revenue for FY24 and turned profitable with a net profit of ₹351 crore. Zomato raised ₹9,375 crore in its 2021 IPO and its stock has surged 192% since then, far outpacing the Nifty’s 32% gain.
SEBI’s ‘pre-filing’ route, introduced in 2022, allows companies to keep early IPO details private and adjust the issue size by up to 50% before finalizing the updated prospectus.
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