Swiggy IPO Opens Today, Anchor Investors Pour in ₹5,085 Crore

6 Nov 2024 , 09:43 AM

Swiggy, the popular food delivery company, has secured ₹5,085.02 crore through its anchor book on November 5. The issue is open for subscription for all investors from November 6-9.

Swiggy aims to raise a total of ₹11,327.43 crore from this IPO, marking it as the second-largest IPO in India this year after Hyundai Motor India’s ₹27,870 crore. The IPO includes a fresh issue of ₹4,499 crore in shares and an offer-for-sale of 17.5 crore shares valued at ₹6,828.43 crore. The company has fixed the price range of ₹371-390 per share.

In its filing on November 5, Swiggy announced it allocated 13.03 crore shares to anchor investors at ₹390 each. Major global investors in the anchor book include New World Fund, Fidelity, Blackrock, Government Pension Fund Global, and Citigroup. Leading domestic investors like ICICI Prudential, Kotak Mahindra AMC, and SBI Mutual Fund also participated.

Notably, 5.3 crore shares were allocated to 19 domestic mutual funds, representing 69 schemes, according to Swiggy.

Several insurance companies, including SBI Life, HDFC Life, ICICI Prudential, and Kotak Mahindra Life, also invested through the anchor book.

The offer-for-sale sees shares sold by investors like Accel India, Alpha Wave Ventures, Coatue PE Asia, and Tencent Cloud Europe.

Founded in 2014 by Sriharsha Majety and Lakshmi Nandan Reddy Obul, Swiggy plans to use ₹164.8 crore from its IPO funds to repay debts of its subsidiary Scootsy. Additional funds will support expansion of its Dark Store network, investment in technology, brand marketing, and potential acquisitions.

Currently, Zomato is Swiggy’s only listed competitor. Swiggy’s shares are set to begin trading on the NSE and BSE from November 13.

Market experts noted that Swiggy’s IPO shares are trading at a premium of 3-5 percent in the grey market, an informal space for IPO trading before listing.

Kotak Mahindra Capital, Citigroup, Jefferies India, Avendus, JP Morgan, BofA Securities, and ICICI Securities are the book-running lead managers for this issue.