Swiggy IPO: Shareholders' Approve Increasing Fresh Issue Size To Rs 5,000 Crore
Swiggy IPO total size could go up to Rs 11,664 crore, if Swiggy goes for the increased primary issue size. The current clearance Swiggy has stands at Rs 10,414 crore.
Swiggy's shareholders on Thursday gave their nod to increase the fresh issue component of its initial public offering to Rs 5,000 crore from the current Rs 3,750 crore, according to people in the know.
The clearance would mean that Swiggy can now raise an additional Rs 1,250 crore if it wishes to. The offer-for-sale component will continue to be worth Rs 6,664 crore, for which investors are selling 18.5 crore shares.
The total size of the IPO could be Rs 11,664 crore if Swiggy goes for the increased primary issue size. The current clearance Swiggy has stands at Rs 10,414 crore.
In September, Swiggy's filed the first version of its updated draft red herring prospectus. A second, further updated version will be made available at a later stage to the Registrar of Companies and the exchanges before the final RHP is filed. In April, it had filed for an IPO via the confidential filing route.
As for the proceeds of the issue, Swiggy plans to use Rs 982 crore to invest in its subsidiary Scootsy and expand the dark store network for its quick commerce arm, Instamart.
It will invest Rs 586 crore in technology and cloud infrastructure and allocate Rs 929 crore for brand marketing and business promotion. Further, it will spend about Rs 137 crore to reduce debt.
