Cyril Amarchand Mangaldas is acting as the legal counsel for Swiggy in its highly anticipated Initial Public Offering (IPO).
It has made significant progress with the submission of an updated Draft Red Herring Prospectus (UDRHP) to the Securities and Exchange Board of India (SEBI) on September 26. As a major player in India’s food tech sector, Swiggy aims to raise ₹3,750 crore through a fresh issue of shares.
Online food aggregator, is looking to enter into market with a ₹10,414 crore IPO. The company is planning to raise the amount via fresh issue and offer for sale (OFS). Swiggy’s IPO consists of a fresh issue of shares worth ₹3,750 crore and an OFS component of 18.52 crore worth ₹6,664 crore.
Additionally, the Offer for Sale (OFS) will consist of 18.53 crore shares, with notable investors such as Accel, Coatue, Alpha Wave, Elevation, Norwest, and Tencent planning to reduce their stakes. This collective effort will push the total IPO size beyond ₹10,000 crore.
The IPO structure reflects Swiggy’s strategic initiative to attract new investors while allowing existing stakeholders to partially exit, thereby generating fresh capital for further expansion.
With a valuation near ₹350 per share, the OFS component alone is expected to be valued at approximately ₹6,500 crore. Funds from the fresh issue will be allocated to key initiatives, including debt repayment for its subsidiary Scootsy and significant expansion of Scootsy’s Dark Store network to enhance Swiggy’s position in the Quick Commerce sector. Specifically, ₹982.40 crore is designated for Scootsy, with ₹559.10 crore for establishing new Dark Stores and ₹423.30 crore for lease payments.
Swiggy will also invest ₹586.20 crore to upgrade its technology and cloud infrastructure, and ₹929.50 crore for brand marketing and business promotion. A portion of the proceeds will be used for inorganic growth and general corporate purposes, ensuring a well-rounded approach to the company’s growth strategy.
The Book Running Lead Managers for this prominent IPO include Kotak Mahindra Capital Company, J.P. Morgan India, Citigroup Global Markets, BofA Securities, Jefferies India, ICICI Securities, and Avendus Capital, underscoring the significance of Swiggy’s public offering.
With the IPO poised to transform the Indian food delivery and quick commerce landscape, Swiggy’s initiative is viewed as a pivotal moment in the capital markets, particularly as investors seek to diversify from competitors like Zomato and invest in Swiggy’s long-term growth potential.
Northern Arc Capital Limited’s IPO aggregating to INR 7,770 million
