Swiggy files for IPO via confidential route, aiming for ₹10,414 Crore public offering

6 May 2024 , 01:50 PM

Reports suggest that Swiggy, a leading player in the food delivery sector, has chosen the confidential filing route to submit its initial public offering (IPO) documents to the Securities and Exchange Board of India (Sebi).

Unlike the draft red herring prospectus (DRHP), these confidential papers withhold vital business details until regulatory approval. Introduced by Sebi in November 2022, this approach allows businesses to keep significant information private until receiving regulatory approval for their public issues.

The DRHP becomes public only after the company receives approval from the regulator and decides on the timing of the issue. Additionally, unlike regular filings where IPO approval is valid for 12 months after Sebi provides its observations on the DRHP, approval in confidential filing remains valid for a longer duration of 18 months.

Prior to Swiggy, SoftBank-backed Oyo and Tata Play (formerly Tata Sky) also opted for the confidential filing route for their IPOs. The reports of confidential filing surfaced shortly after Swiggy secured approval from its shareholders for its ₹10,414-Crore IPO. A special resolution was passed at the company’s extraordinary general meeting (EGM) on April 23, granting shareholder consent to the IPO.

Swiggy’s IPO is expected to include a mix of fresh issuance of shares worth ₹3,750 Crore and an offer-for-sale (OFS) of shares worth ₹6,664 Crore. Additionally, Swiggy may seek to raise ₹750 Crore from anchor investors in a pre-IPO round.

Despite reporting a $207-Million loss for the nine-month period ending December 2023 on a revenue of $1.02 Billion, Swiggy remains focused on its IPO ambitions. Previously, the company posted a net loss of $501 Million for the full fiscal year 2022-23 on operating revenue of $992 Million.