All eyes are on the initial public offering of Swiggy that will close for public subscription today. The much-awaited Swiggy’s initial public offering that opened on Wednesday saw a muted response so far from investors by subscribing 0.35 time only. The IPO targets ₹11,327.43 crore through a combination of fresh issue worth ₹4,499 crore and offer for sale of 17.51 crore shares worth ₹6,828.43 crore. The IPO, priced at ₹371-390, comes out with a lot size of 38 shares.
Up to 75 per cent of issue is reserved for qualified institutional bidders, 15 per cent for non-institutional investors (HNIs) and 10 per cent for retail investors. The company has also reserved 750,000 shares for employees, which will get a discount of ₹25 from the issue price.
While retail portion was subscribed 0.84 time and employee by 115 times, QIBs (0.28 time) and NIIs (0.14 time) are yet to make big move.
Investors selling in the OFS included 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.
As part of IPO process, food delivery and quick-commerce major Swiggy has collected ₹5,085 crore from anchor investors by allotting 13.04 crore shares to 151 funds at ₹390.
Among the investors who were allocated shares are New World Fund Inc, Government Pension Fund Global, Nomura Funds Ireland Public Limited Company, Fidelity Funds, BlackRock, Allianz Global Investors Fund and Schroder International, according to a circular uploaded on BSE’s website.
Additionally, 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 were also allotted shares in the anchor round.
Swiggy plans to utilize the IPO proceeds towards funding investment in the Material Subsidiary, Scootsy, investment in technology and cloud infrastructure, brand marketing and business promotion expenses for enhancing the brand awareness and visibility of its platform, across segments; and for funding inorganic growth through unidentified acquisitions and general corporate purposes.
Swiggy is an online food delivery platform that emerged in India in 2014, offering a convenient solution for ordering food from a variety of restaurants.
The company operates five business units: Food Delivery; Out-of-home consumption, including restaurant visits and events; Quick Commerce, offering on-demand delivery of groceries and household items; supply chain and distribution, providing B2B deliveries, warehousing, logistics, and distribution for wholesalers and retailers; Platform innovation, introducing new services like Swiggy Genie and Swiggy Minis.
Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BoFA Securities India, and ICICI Securities are the book-running lead managers of the IPO.