Swiggy Likely To Roll Out IPO On November 6, Trim Valuation Target To $11.3 Bn

Swiggy's highly anticipated initial public offering (IPO) is expected to open for subscription on November 6, lasting until November 8, according to media reports. This offering includes an offer for sale (OFS) of Rs 6,800 crore and a fresh equity issue of Rs 4,500 crore.

The company has adjusted its valuation down to USD 11.2 billion from an earlier target of USD 15 billion, influenced by market volatility and the lacklustre performance of Hyundai India, reported media.

In its last private funding round in January 2022, Swiggy was valued at USD 10.7 billion after securing USD 700 million from a consortium led by Invesco. The proceeds from the IPO are earmarked for investments in its subsidiary Scootsy, technology upgrades, cloud infrastructure, and brand marketing initiatives over the next four to five years.

Prominent investors, including BlackRock and the Canada Pension Plan Investment Board (CPPIB), are expected to participate in the IPO, which will be the second-largest stock offering in India this year, according to media reports.

Following the IPO, analysts anticipate Swiggy will focus on achieving earnings before interest, taxes, depreciation and amortisation (Ebitda) positivity by cutting down on promotional and advertising costs as it competes with Zomato in the rapidly growing online food delivery market, which now includes quick commerce services.