• By Mayukh Debnath
  • Fri, 27 Sep 2024 01:01 AM (IST)
  • Source:Reuters

Swiggy IPO: Food delivery giant Swiggy filed its updated draft red herring prospectus (DHRS) on Thursday with the Securities and Exchange Board of India, setting the stage for a much-anticipated initial public offering (IPO). According to the DHRS, while shares worth Rs 3,750 crore will be on offer in the form of fresh issue, existing shareholders, including Accel India and Tencent Europe, will sell 18.52 crore shares.

Market sources cited by news agency PTI pegged Swiggy's proposed IPO size at over Rs 10,000 crore. The food and grocery delivery major posted a net loss of Rs 2,350 crore for FY24, nearly 44 per cent smaller than what it did in the previous financial year. Revenue climbed about 36 per cent to Rs 11,247.3 crore.

The SoftBank-backed company competes with Zomato in India's online food deliveries sector, with both companies making major bets on the new so-called quick commerce boom. Swiggy has chosen a good time to come to the market, said WealthMills Securities equity strategist Kranthi Bathini, noting that investor sentiment towards IPOs was strong.

"It will also attract extra interest from the investors because of the outperformance of Zomato in the recent past," Bathini said. Swiggy's IPO is the country's latest in a flurry of public offerings as the stock market surges to record highs. Around 235 companies raised more than USD 8.6 billion, more than double the amount raised last year, Reuters said citing LSEG data.

Swiggy's Instamart is India's No.2 in the quick commerce segment with an estimated market share of 20-25%, behind Zomato-owned Blinkit which has 40-45%, according to a UBS note released in August.

(With inputs from agencies)