HNIs Buy Swiggy Unlisted Shares Ahead of IPO

A group of initial investors of Swiggy are selling their shares and partially reducing their stake in the food delivery enterprise. This strategic move comes ahead of the much-anticipated IPO later this year as per the reports.

These shares will be acquired by new investors who are optimistic about the company’s future growth potential. Sources familiar with the transaction informed Money Control that prospective investors include asset and wealth managers like 360ONE, as well as several high-net-worth individuals (HNIs).

Swiggy's Secondary Market Buzz Grows

As Swiggy prepares for its upcoming IPO, there has been a notable increase in unlisted market transactions of swiggy shares. These transactions are often seen as routine practice before an IPO of a Company.

It enables early investors such as Prosus, Accel, and Elevation Capital—who originally invested in Swiggy in 2015—to capitalize on the accumulated gains from Swiggy's significant growth and expansion in the market.

Current Trading Price and Prosus's Planned Stake Reduction

The Swiggy Share price is currently hovering around Rs 350 per share. This translates to a valuation of approximately US$ 9.3 billion (around ~77,600 cr). This valuation is slightly lower than the valuation of US$ 10.7 billion (around ~89,300 cr) achieved by the company during its last funding raising round in 2022.

Prosus, which currently holds about 33% of Swiggy, plans to decrease its stake to 25% or lower. This planned move avoids classification as a promoter after the company is listed.

Swiggy Ipo Date

Swiggy started its IPO process in March 2022. The Company has selected investment bankers like ICICI Securities & JP Morgan to run its IPO.It has taken many steps towards its IPO since then. They converted themselves into a Public Limited Company and have appointed new board members as well.

Financial strategies and Fundraising

Swiggy has already received shareholders’ approval for a US$1.25 billion IPO and has filed its draft IPO papers with market regulators. The Company wishes to raise US $450 million through fresh issues and $ 800 million as an offer-for-sale component. They also plan to raise Rs. 750 crores from Anchor investors in a pre-IPO round.

Founded in 2014 by Sriharsha Majety, Rahul Jaimini, and Nandan Reddy, Swiggy has secured more than $3.6 billion in funding from investors such as SoftBank, DST Global, Alpha Wave Global, Accel, Norwest Venture Partners, Prosus, Elevation, and others.

If Swiggy lists on the stock exchange with a valuation of US$ 13 billion, it would mirror the market capitalization achieved by its rival Zomato, which stood at US$ 13.3 billion when it went public in July 2021.

Market Outlook and Valuation

Their Gross Order Value (GOV) growth stood at 26 percent for FY24 year-on-year (YoY). Its trading loss stood at $158 million for FY24.

Despite the shares being traded at a discounted price, financial experts and bankers are optimistic about Swiggy's expected market value at its IPO. The company is projected to be valued between USD 10 billion and USD 13 billion (approximately Rs 83,500 crore to Rs 1,08,500 crore) when it goes public.

How to Invest in Swiggy?

Swiggy shares are not yet listed but they are available in the unlisted share market. With a positive market sentiment and accurate pricing, we can expectswiggy sharesto get oversubscribed in the IPO.

But you can gain even more by buying pre-IPO swiggy shares.Stockifycurates insights for unlisted shares and helps you make better investment decisions and generate wealth through its trading platform.

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