Food and grocery delivery platform Swiggy is likely to file its draft red herring prospectus (DRHP) this weekend, according to a Moneycontrol report citing people close to the developments. The report said the approval for its confidential filing from the market regulator Sebi is almost through, paving the way for its DRHP.
After filing its DRHP, Swiggy’s management will participate in investor roadshows across India, the US, and Singapore.
“The time gap between a DRHP and RHP for a confidential filing is typically lesser as the market Regulator has already gone through the information,” the Moneycontrol report quoted a source as saying.
Swiggy recently expanded its IPO to $1.4 billion amid rising competition in the online grocery delivery space, where its Instamart division competes with Blinkit (owned by Zomato), Zepto, and Tata’s BigBasket. India’s food delivery market is expected to reach Rs 2 lakh crore by 2030, with Swiggy and Zomato controlling over 90 per cent of the market share.
Major investors in Swiggy include Prosus (32 per cent), SoftBank (8 per cent), and Accel (6 per cent), with other stakeholders like Elevation Capital, DST Global, Tencent, and GIC. Swiggy’s last funding round in January 2022 valued the company at $10.7 billion. Bankers are optimistic that the company could debut with a valuation between $10-13 billion.
Initially expected to raise Rs 3,750 crore ($450 million) through a fresh issue, Swiggy now plans to issue fresh shares worth Rs 5,000 crore ($600 million), increasing the total IPO size to $1.4 billion from $1.25 billion. The company’s board is expected to finalise this change at an EGM on October 3, with no modifications to the OFS component. Swiggy shares have been trading in the secondary market at around Rs 330-350, with HNIs and family offices actively purchasing shares at a valuation of $9-9.3 billion in recent transactions.
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