New Delhi: The initial public offering (IPO) of food delivery and express commerce major Swiggy will begin today. Swiggy plans to raise Rs 11,300 crore through IPO.
Swiggy on Tuesday raised Rs 5,085 crore from major investors, a day ahead of its initial public offering for public subscription. According to a notice uploaded on the Bombay Stock Exchange website, investors who received shares include New World Fund Ltd, Government Pension Fund Global, Nomura Funds Ireland PLC, Fidelity Funds, BlackRock, Allianz Global Investors and Shi Rhodes International.
Besides, ICICI Prudential Mutual Fund (MF), SBI Mutual Fund, HDFC Life Insurance Company Ltd, SBI Life Insurance Co. Ltd and ICICI Prudential Life Insurance Company Ltd also received rights issue in the main round.
What you want to know about Swiggy’s upcoming IPO
1. The shares are offered at a price range of Rs 371 to Rs 390 per share.
2. This issuance will end on November 8, and the main investor bidding will be open for one day on November 5.
3. Companies selling shares under the OFS route include: Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V BV, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings BV, Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe BV
4. Early investors such as Accel, Elevation Capital and Norwest Ventures received returns of up to 35x on the portions they decided to sell. SoftBank, on the other hand, continues to invest.
5. According to the IPO documents, the proceeds from the new issue, amounting to Rs 137.41 million, will be used to repay the debt of subsidiary Scootsy.
6. In addition, CoolView will invest 9.824 billion rupees to expand its dark store network in the fast commerce sector, of which 5.591 billion rupees will be used to set up dark stores and 4.233 billion rupees will be used for lease or license payments.
7. The company will also invest 5.862 billion rupees in technology and cloud infrastructure, 9.295 billion rupees in brand marketing and business promotion, and the funds will be used for inorganic growth and general corporate purposes.
Should you subscribe to Swiggy IPO?
Stock broking firm Bajaj Broking recommends investors to subscribe to the IPO for the long term. “We recommend subscribing to the IPO from a long-term perspective,” Bajaj Broking said.
Swiggy IPO: Indicative Timeline
Allocation basis finalized: November 11, 2024
ASBA Refund/Unlock: November 12, 2024
Credit of Equity Shares to DP A/C: November 12, 2024
