Food delivery start-up Swiggy recently got approval from its shareholders for its $ 1.2 billion ( Rs Around Rs 10,400 crore) for its public offer of shares. This will be an IPO (Initial Public Offer).As per the regulatory filing in RoC (Registrar of Companies), Money Control reported that on 23rd April, a special resolution was passed at an Extraordinary General Meeting(EGM).
Let’s look at the key developments of this issue:
Swiggy IPO size.
The company plans to raise Rs 3750 crore( around $450 Million) through fresh issues and Rs 6,664 crore(around $800 million) through an Offer For Sale(OFS). Here Offer for Sale means an existing shareholder will sell his shares when the share gets listed in the stock market.
What does Swiggy have to say regarding this IPO?
“The consent and approval of the shareholders of the company be and is hereby accorded to create, issue, offer, allot, and/or transfer of its equity shares up to an aggregate of ₹37,501 million by the way of a fresh issue of equity shares up to an aggregate amount of ₹66,640 million by certain existing shareholders (OFS).” the company reported its filings made after the Extraordinary General Meeting.
Swiggy’s plans through this IPO
The company has been preparing for an IPO since last year. It also plans to raise around Rs 750 crores as a pre-IPO round of funding. This will be in consultation with its Book Running Lead Manager (BRLM). If this pre-IPO round takes place, it will reduce the amount to raise in the IPO to that extent.
The company has not yet filed its Draft Red Herring Prospectus(DHRP), so the shareholders selling their stakes are unknown.
Is Swiggy Private or Public currently?
Till April 2024, Swiggy was a privately held company. In April, with a plan to launch its IPO, Swiggy converted from a private to a public limited company.
The documents submitted by Swiggy to ROC had the Swiggy Ltd. and not Swiggy Pvt. Ltd., indicating a change of name.
In Feb 2024, in the official communications, Swiggy changed its name from Bundl Technologies Pvt Ltd to Swiggy Pvt Ltd. The company justified this by saying “to help establish greater proximity and identification of the company’s corporate name with the company’s core brand”.
Swiggy IPO launch date and price
The soft bank-funded start-up has not yet filed its DHRP (Draft Red Herring Prospectus) with SEBI. However, the public issue is planned to be open for subscription by the end of this year.
In that time, Swiggy has taken a different route of filing confidential papers with SEBI. Money Control reported
Unlike the normal route of filing DHRP, where the business and details are publicly available, the confidential filing need not disclose business details publicly. A regular filing approval is valid for 12 months after SEBI gives its final observations. In the confidential filing, the approval is valid for 18 from the day SEBI gives its observations. The price band will be known in public only after Swiggy files its DHRP.
Swiggy Financials 2024
The food tech and quick delivery start-up is achieving a stable 25-30% growth year on year in FY24. In the first 9 months, the company reported a revenue of Rs 5,476 crore out of which 4,526 crore was from their operations i.e. 82.65% of the total revenue. The remaining income was from Swiggy Instamart.
In the first 9 months, the Gross Order Value(GOV) rose to Rs 24,230 crore with food delivery comprising 76.2% of the order share. The remaining was from Swiggy Instamart.
Invest In Swiggy Unlisted Shares At Stockify.
Swiggy is one of the fastest-growing online food delivery businesses that target 500 Indian cities. In addition, the company is planning for global expansion that brings investors a good return on investment.
This IPO for swiggy shares will allow investors to buy its listed stocks at the base price whose further details are not disclosed by the company. However, you can take advantage of an early investor by buying at the current Swiggy Share price.
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