Food delivery giant Swiggy is set to make its stock market debut on Wednesday, November 6, 2024 to raise more than ₹11,000 crore from its initial public offering (IPO).
The company plans to use the proceeds for investing into subsidiary Scootsy, investing in technology and cloud infrastructure, brand marketing and business promotion expenses, for funding unidentified acquisitions and also for general corporate purposes.
Who are some of the prominent investors in Swiggy?
Swiggy has seen many famous celebrity investors who have been actively snapping up the food delivery giant’s shares on the secondary market.
This includes cricketers Rahul Dravid and Zaheer Khan, tennis star Rohan Bopanna, film producer Karan Johar, and actor-entrepreneur Ashish Chowdhry, according to an ETNow report.
Apart from them, Bollywood superstar Amitabh Bachchan’s family office had bought a small stake in the company by purchasing shares from the firm’s employees and early investors in August this year.
This came at the same time Motilal Oswal Financial Services chairman Raamdeo Agrawal also buying a stake in Swiggy.
Following this, actress Madhuri Dixit, along with Ritesh Malik, founder of Innov8, a co-working space player (Now owned by Oyo), were reported to have bought Swiggy shares worth ₹3 crore from the secondary market, paying ₹1.5 crore each ( ₹345 per share). This was in September this year.
Some of the important investors for the IPO itself include Norway’s sovereign wealth fund Norges and Fidelity, which have reportedly placed bids worth over $15 billion, 25 times the $605 million portion reserved for such investors, according to a Mint report.
Important details of the Swiggy IPO
The Swiggy IPO will open up for public subscription on Wednesday, November 6, and will be closed on Friday, November 8. The allotment may likely be November 11 and the listing date may be November 13.
The price band is set between ₹371 and ₹390 per share.
The company aims to raise ₹11,327.43 crore (considering the upper end of the price band) through a combination of a fresh issue including 11.54 crore equity shares worth ₹4,499 crore and an offer for sale (OFS) of 17.51 crore shares worth ₹6,828.43 crore.
The grey market premium (GMP) is ₹22 per share, which is a premium of 5.64%, at ₹412 per share, compared to the issue price of ₹390 per share.
The minimum lot size is 38 shares, which means at the upper end of the price band, investors have to put in ₹14,820 at minimum.
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75% of the shares are reserved for Qualified Institutional Bidders (QIB), 15% for Non-Institutional Investors (NII) and 10% for retail investors.
Employees are reserved 750,000 shares at a discount of ₹25 from the issue price.
Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities and ICICI Securities are the book running lead managers, while Link Intime India Private Ltd is the registrar.
Investors who are selling shares for the OFS include Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe B.V.
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