New Delhi:

Swiggy’s much-anticipated stock market debut on Wednesday catapulted over 500 current and former employees to the “crorepati” club, with the food delivery and quick commerce major’s listing poised to unlock Rs 9,000 crore in ESOPs for 5,000 staffers, people aware of the details said.

Swiggy’s initial share sale had a price range of Rs 371-390 a share.

“The total Employee Stock Option Plan (ESOP) pool is worth Rs 9,000 crore, with 5,000 past as well as present employees holding them. At the upper price range of the initial share price (Rs 390), 500 employees out of the 5,000 are set to become crorepatis,” a person in the know shared the details requesting anonymity.

On Wednesday, shares of Swiggy were listed with a premium of nearly 8 per cent against the issue price of Rs 390 on NSE.

Shares of the firm made the market debut at Rs 420, a jump of 7.69 per cent on the bourse.

The stock on the BSE was listed at Rs 412, a jump of 5.64 per cent from the issue price. Later, it surged 7.67 per cent to Rs 419.95.

The company’s market valuation stood at Rs 89,549.08 crore during the early trade.

The Rs 11,327-crore initial public offer of Swiggy was fully subscribed on the final day of the share sale on Friday, ending with 3.59 times subscription.

The company’s IPO (Initial Public Offering) had a fresh issue of shares worth Rs 4,499 crore, along with an Offer-For-Sale (OFS) of Rs 6,828 crore.

Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; and debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Mumbai:

Food delivery and quick-commerce major Swiggy on Wednesday said it is expecting “very solid” growth in the next 3-5 years and plans to expand its geographical footprint and stores network for Instamart business.

The company which made a strong debut on the stock exchanges on Wednesday said it has doubled the categories for quick commerce in the last 12 months.

“We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint, stores network for Instamart business,” Swiggy CEO Sriharsha Majety said post the listing ceremony.

Swiggy listed at Rs 412, reflecting a jump of 5.64 per cent from the issue price on the BSE. Later, it surged 15.12 per cent to Rs 449 apiece.

The Rs 11,327-crore initial public offer of Swiggy got fully subscribed on the final day of the share sale on Friday, ending with 3.59 times subscription. The initial share sale had a price range of Rs 371-390 a share.

The company’s IPO (Initial Public Offering) had a fresh issue of shares worth Rs 4,499 crore, along with an Offer-For-Sale (OFS) of Rs 6,828 crore.

Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; and debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.

Majety further noted that the company will continue to invest in various categories.

He also said that Instamart’s average delivery time has reduced over time in big cities, adding, “our delivery time has reduced from 17 minutes to 12 minutes.” Swiggy plans to open bigger dark stores in size as much as 8,000-10,000 sq ft, he said.

On the reported CCI probe against food delivery platforms including Swiggy for anti-competition practices, Mr Majety said, “we are following laws and practices with complete compliance.” A Competition Commission probe has found that food delivery platforms Zomato and Swiggy indulged in unfair business practices, including alleged preferential treatment to some restaurant partners, according to sources. 

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Mumbai:

Online food delivery platform Swiggy saw a muted response to its Rs 11,327 crore IPO on the first day of bidding on Wednesday, as brokerages advised investors to avoid the IPO until the company’s financial performance and growth outlook improve.

The IPO received bids for about 1.8 crore shares against around 16 crore shares on offer, according to the NSE data.

Till about 4 pm, Swiggy received a total of 1,78,10,182 bids as against 16,01,09,703 shares (a mere 0.11 times), as per the NSE data.

The non-institutional investors (NIIs) subscribed for 0.05 times the quota available for them, while retail individual investors (RIIs) applied for 0.52 times the total shares offered to them.

The issue will close for bids on November 8.

The Zomato rival has fixed the price band between Rs 371 and Rs 390. Swiggy shares will be listed on the exchanges on November 13, while the allotment of shares will take place on November 11.

According to a Choice Broking IPO note, the company has experienced net losses annually since its incorporation and depends on numerous third-party providers for various operational aspects, including payment gateways and supply chain management. Another IPO note by Geojit said that “on the profitability side, Swiggy has witnessed setbacks and has recorded negative cash flow from operations since inception”.

Motilal Oswal Financial Services Ltd recommended only “High-Risk investors to ‘Subscribe for long term'”.

Over the past three fiscal years, the company has consistently reported losses on a consolidated basis. In FY22, the total income was Rs. 6,119.78 crore, with a net loss of Rs 3,628.90 crore. The following year, FY23, saw an increase in total income to Rs 8714.45 crore, but the net loss also increased to Rs 4,179.31 crore. In FY24, the total income rose further to Rs 11,634.35 crore, while the net loss was reduced to Rs 2,350.24 crore. In the first quarter of FY25, ending on June 30, 2024, the company recorded a total income of Rs 3,310.11 crore and a net loss of Rs 611.01 crore.

“These figures indicate that the company has been experiencing continuous financial losses over the reported periods,” said Bajaj Broking in its note.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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| Photo Credit: Getty Images

Swiggy Ltd.‘s  nearly ₹11,000 crore Initial Public Offering (IPO) will be open between November 6 and November 8, 2024. The company is has set a price band between ₹371 to ₹390 a piece.

Shares for the IPO will be allotted in lots of 38 and its multiples. The IPO consists of a fresh issue of ₹4,490 crore and about 17.5 crore equity shares offered for sale. The company plans to use most of the proceeds of the offer to invest in expansion of its dark stores for its quick commerce business Instamart. Another ₹1,150 crore would be spent on brand expansion and marketing, according to the company’s prospectus.

Swiggy is not yet profitable and that is among the first risks. “We have incurred net losses in each year since incorporation and have negative cash flows from operations. If we are unable to generate adequate revenue growth and manage our expenses and cash flows, we may continue to incur significant losses” the company said in its prospectus.

Speaking about the looming slowdown in urban consumers and its impact on Swiggy’s potential performance, the Chief Executive Officer Sriharsh Majetty said “At this point we are not seeing that. The businesses have been demonstrating strong growth. We continue to serve the consumers well and making sure that demand continues to flow through.” at a media briefing.

Swiggy has in recent weeks cut its internal valuation goal twice by a combined 25% due to volatility in the Indian stock markets. File.
| Photo Credit: Reuters

Food delivery giant Swiggy will likely price its $1.35 billion domestic initial public offering, which opens next week, at ₹371-390 per share, sources with direct knowledge of the matter told Reuters.

The IPO will open for subscription from Nov. 6 to Nov. 8, the company’s red herring prospectus dated Monday (October 28, 2024) showed. Anchor investors will bid for shares on Nov. 5.

Swiggy is expected to list its shares on November 13.

The share sale will be the country’s second-biggest stock offering this year, behind Hyundai Motor India’s $3.3 billion IPO earlier this month, which had seen subdued interest from retail investors.

The food and grocery delivery firm, which competes with listed rival Zomato, will sell new shares worth ₹44.99 billion, more than the ₹37.5 billion originally planned.

Existing shareholders including Prosus and Tencent are selling a total of 175.1 million shares.

Swiggy has in recent weeks cut its internal valuation goal twice by a combined 25% due to volatility in the Indian stock markets. It was initially looking at a valuation of as much as $15 billion, but following those cuts, it is now targeting $11.3 billion.

Swiggy did not respond to a Reuters request for comment.

Benchmark Nifty 50 index is now down more than 8% from record highs hit on Sept. 27 due to persistent foreign selling.

Despite recent jitters, India’s IPO market has been buoyant, with around 270 companies raising $12.57 billion so far this year, well above the $7.4 billion raised in all of 2023, LSEG data showed.

Swiggy, backed by SoftBank and Prosus, was concerned to avoid a tepid response to its relatively large IPO, coming amid global uncertainty. File.
| Photo Credit: Reuters

Food delivery giant Swiggy has slashed its IPO valuation again, to $11.3 billion, 25% below the initial goal of $15 billion as market volatility and the lacklustre debut of Hyundai India weigh on sentiment, two sources said on Sunday (October 27, 2024).

BlackRock and Canada Pension Plan Investment Board (CPPIB) will invest in the $1.4 billion IPO, which will be the country’s second-biggest stock offering this year, the sources told Reuters.

Swiggy, Blackrock and CPPIB did not immediately respond to requests for comment outside business hours.

Indian shares have fallen for four weeks in a row, the longest such losing run since August 2023, with the benchmark Nifty 50 index down more than 8% from record highs hit on Sept. 27, due to persistent foreign selling.

Hyundai India shares fell 7.2% on their debut last week after retail investors gave a lukewarm reception amid concerns about a lofty valuation.

Swiggy, backed by SoftBank and Prosus, was concerned to avoid a tepid response to its relatively large IPO, coming amid global uncertainty from the Nov. 5 U.S. presidential election, and decided to cut the valuation in consultation with investors, said one source, with direct knowledge of the company’s plans.

Swiggy does not want a “bad IPO”, this person said. Its last funding round, led by Invesco, valued it at $10.7 billion in 2022.

It competes with Zomato in India’s online restaurant and cafe food deliveries sector, and both have made major bets on a boom in “quick-commerce,” where groceries and other products are delivered in 10 minutes.

Despite recent jitters, India’s IPO market has been buoyant, with around 270 companies raising $12.57 billion so far this year, well above the $7.4 billion raised in all of 2023.

New Delhi:

Food delivery and quick commerce giant Swiggy has filed for a Rs 3,750-crore Initial Public Offering (IPO) in what is likely to be among India’s biggest listings this year.

On Wednesday, it came to light that Swiggy had received clearance for the IPO from markets regulator SEBI and the company said on Thursday that it aims to raise Rs 3,750 crore through a long-awaited public offering.

In its updated draft red herring prospectus, the Bengaluru-based company has said existing shareholders, including Tencent Europe and Accel India, will sell approximately 18.5 crore shares as part of an offer of sale (OFS). With the OFS, the IPO size will reportedly be over Rs 10,000 crore.

Founded in 2014, Swiggy, which is backed by Japan’s Softbank and investment group Prosus, had a valuation of nearly $ 13 billion in April this year and has over 4,700 employees.

According to news agency Reuters, Swiggy’s listing comes amid a booming IPO market, with 198 companies having raised $7.1 billion in the year up to September 4, which is more than double the amount in the same period last year.

Rs 137.41 crore of the proceeds from the fresh issue will be used for debt payment of subsidiary Scootsy, news agency PTI reported, citing the IPO papers. Rs 982.4 crore will also be invested in Scootsy to expand the dark store network in the quick commerce segment, with Rs 559.1 crore allocated for setting up dark stores and the remaining for lease or license payments.

The company will also invest Rs 586.2 crore in technology and cloud infrastructure, Rs 929.5 crore in brand marketing and business promotion, and some funds will also be allocated for inorganic growth and general corporate purposes.

Swiggy’s main competitor, Zomato, had gone public in 2021 and its shares have been among the top performers in the past 12-15 months. 

New Delhi:

Food delivery and quick commerce giant Swiggy is targeting a $10 billion or 83,365 crore valuation with a Rs 10,000-crore initial public offering (IPO). Out of this, the company seeks to raise Rs 3,750 crore from fresh issues.

On Wednesday, it came to light that Swiggy had received clearance for the IPO from markets regulator SEBI and the company said on Thursday that it aims to raise Rs 3,750 crore through fresh issues.

In its updated draft red herring prospectus, the Bengaluru-based company has said existing shareholders, including Tencent Europe and Accel India, will sell approximately 18.5 crore shares as part of an offer of sale (OFS). With the OFS, the IPO size will reportedly be over Rs 10,000 crore.

Founded in 2014, Swiggy, which is backed by Japan’s Softbank and investment group Prosus, had a valuation of nearly $ 13 billion in April this year and has over 4,700 employees.

According to news agency Reuters, Swiggy’s listing comes amid a booming IPO market, with 198 companies having raised $7.1 billion in the year up to September 4, which is more than double the amount in the same period last year.

Rs 137.41 crore of the proceeds from the fresh issue will be used for debt payment of subsidiary Scootsy, news agency PTI reported, citing the IPO papers. Rs 982.4 crore will also be invested in Scootsy to expand the dark store network in the quick commerce segment, with Rs 559.1 crore allocated for setting up dark stores and the remaining for lease or license payments.

The company will also invest Rs 586.2 crore in technology and cloud infrastructure, Rs 929.5 crore in brand marketing and business promotion, and some funds will also be allocated for inorganic growth and general corporate purposes.

Swiggy’s main competitor, Zomato, had gone public in 2021 and its shares have been among the top performers in the past 12-15 months. 

Image for representation
| Photo Credit: Getty Images

Food and grocery delivery major Swiggy has received shareholders’ approval for an initial public offering to raise ₹10,414 crore fund through issue of fresh equity shares and an offer for sale, according to sources.

A special resolution was passed at an extraordinary general meeting of Swiggy on April 23, they said.

According to sources, the Bengaluru-based company plans to raise up to ₹3,750 crore funds through fresh equity shares, in addition to an offer-for-sale component of up to ₹6,664 crore.

The company is looking to shore up about ₹750 crore from anchor investors in a pre-IPO round, they added.

Swiggy, founded in 2014, has a valuation of $12.7 billion as on April 10, 2024. Its annual revenue stood at $1.09 billion as on March 31, 2023.

The company has more than 4,700 employees, according to Tracxn, a global startup data platform.