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Economic Times
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Swiggy IPO anchor allocation opens today: all you need to know
- Swiggy's Initial Public Offering opens for anchor investors on November 5. The public issue attracted strong interest from investors, with a $600-million anchor book oversubscribed 25 times, attracting bids worth $15 billion.
- The IPO subscription will start on November 6 and close on November 8 with Swiggy setting a price band of Rs 371-390 per share, valuing the company at up to $11.3 billion.
- Swiggy's targeted primary fundraising through issuance of new shares has been increased to Rs 4,499 crore from an earlier plan of Rs 3,750 crore. Prosus, the largest investor in Swiggy, will divest 109.1 million shares in the company and early investors such as Accel, Elevation Capital and Norwest Venture Partners will divest part of their holdings.
- Founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy will part-sell their stakes. Swiggy will allocate nearly Rs 1,179 crore to its Instamart business and invest Rs 755.4 crore in expanding its dark store network.
- Lease and license payments for dark stores or warehouses will amount to Rs 423.3 crore and the fresh investment will take the total number of Instamart dark stores up from 557 to 741.
- Swiggy will also use Rs 703.4 crore to improve technology, such as cloud infrastructure and logistics optimization.
- Swiggy reported operating revenue of Rs 3,222 crore in Q1 2022, with its net loss up at Rs 611 crore from Rs 564 crore a year ago.
- During the same period, Instamart clocked a gross order value (GOV) of Rs 2,724 crore and revenue of Rs 403 crore.
- Listed rival, Zomato, has a market capitalisation of $26 billion.
- Swiggy's IPO has generated significant interest among investors and will seek to raise funds to drive expansion and growth.
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