Swiggy Ltd. released the red herring prospectus for its highly-anticipated initial public offering on Tuesday. The IPO will open on Nov. 6 and close on Nov. 8, as per the document.
The Swiggy IPO consists of a fresh issue of Rs 4,499 crore and an offer for sale of 17.5 crore shares, the RHP showed.
While the fresh issue size has been increased from Rs 3,750 crore, it is still lower than the Rs 5,000 crore the company had received a board nod for.
The offer-for-sale size has also been reduced, with 1 crore lesser shares being offloaded now, as compared to 18.5 crore shares in the earlier versions of the RHP.
The issue is likely to be priced between Rs 371-390 per share. At the upper end of the expected price band, the company is looking to raise Rs 11,327.4 crore from the issue.
Assuming the same upper price band, the company is valued at around Rs 87,299 crore or $10.38 billion, which is also a tad lower than its earlier $11.2 billion target.
The latest filing also gives insights into its most recent financials, for Q1 FY25. In the April-June quarter of this year, Swiggy posted a revenue from operations of Rs 3,222.2 crore, compared to Rs 2,389.8 crore in the same period last year. Loss after tax stood at Rs 611 crore, versus loss of Rs 564.1 crore.
To compare with its listed peer, Zomato posted Rs 4,206 crore in revenue from operations and a profit of Rs 253 crore in the same quarter.
Co-founders Sriharsha Majety and Lakshmi Nandan Reddy Obul will offload 17.45 lakh shares each via the OFS route. Former chief technology officer Rahul Jaimini will sell 11.63 lakh shares and Cipla's Samina Hamied offers 27,520 shares.
Among 19 institutional investors, selling shareholders include Accel India IV (Mauritius) Ltd., Tencent Cloud Europe B.V, Alpha Wave Ventures LP, Apoletto Asia Ltd., Coatue PE Asia XI LLC, and MIH India Food Holdings B.V.
In April, Swiggy had filed for an IPO via the confidential filing route. In September, the company filed the first version of its updated draft red herring prospectus.
As for the proceeds of the issue, Swiggy plans to use Rs 1,343 crore to invest in its subsidiary Scootsy and expand the dark store network for its quick commerce arm, Instamart.
It will invest Rs 703 crore in technology and cloud infrastructure and allocate Rs 1,115.3 crore for brand marketing and business promotion. Further, it will spend about Rs 137 crore to reduce debt.
Kotak Mahindra Capital Co., Citigroup Global Markets India Pvt., Jefferies India Pvt., Avendus Capital Pvt., JPMorgan India Pvt., Bofa Securities India Ltd. and ICICI Securities Ltd. are the bookrunning lead managers of the Swiggy IPO, while Link Intime India Pvt. is the registrar for the issue.
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