Swiggy upsizes IPO; plans to raise Rs 5,000 crore via fresh issue of shares

Swiggy may increase the fresh issue component of its upcoming IPO to Rs 5,000 crore, and will seek the approval of its shareholders for the same at an extraordinary general meeting (EGM) on October 3, it said in a notice to shareholders.

The Bengaluru-based food and grocery delivery company had initially planned to raise Rs 3,750 crore in fresh capital, in addition to a Rs 6,664 crore offer for sale. The final size of Swiggy's IPO could be different from the approval it is seeking from its shareholders.

Swiggy has made a confidential filing of its draft prospectus for its IPO with the Securities and Exchange Board of India (Sebi).

The company's board of directors had first accorded its approval to the public offering back in April.

Tuesday’s development was first reported by online news portal Entrackr.

Last week, Swiggy reported its financials for the year ended March 31, 2024. It recorded a 36% growth in its operating revenue to Rs 11,247 crore, while managing to reduce its net loss to Rs 2,350 crore -- 44% lower than a year ago.

In its mainstay food delivery business, Swiggy competes with Gurgaon-based Zomato, while in the quick commerce space, its vertical Instamart competes with the likes of Zomato-owned Blinkit, Nexus Venture Partners-backed Zepto, Flipkart Minutes and Tata Digital’s BigBasket.

Besides the IPO, several secondary transactions have been happening, where new investors are joining Swiggy’s capitalisation table ahead of the company going public.

On August 28, ET was the first to report that the family office of Bollywood superstar Amitabh Bachchan has picked up a small stake in Swiggy by purchasing shares held by the firm’s employees and early investors.

Motilal Oswal Financial Services chairman Raamdeo Agrawal has also acquired a stake in Swiggy, in addition to automobile materials manufacturer Hindustan Composites.