Swiggy sets IPO price band between Rs 371-390 per share

Food and grocery delivery platform Swiggy is set to price its upcoming IPO in the range of Rs 371-390 per share, according to sources. At the upper end, this pricing would peg the SoftBank-backed company’s valuation at $11.3 billion. Swiggy is expected to file its red herring prospectus with SEBI later today.

The Rs 11,300 crore IPO, one of the largest in India this year, is likely to open on November 6. The offering will include a secondary sale component of Rs 6,800 crore through an offer for sale (OFS) and Rs 4,500 crore in primary capital, which will flow directly into the company.

A spokesperson for Swiggy didn’t immediately respond to ET’s request for comment.

Rival Zomato had a market capitalisation of $26.5 billion at Monday’s closing share price on the BSE. Zomato’s Blinkit is the market leader in quick commerce where it competes with Swiggy Instamart.

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Swiggy had initially filed for the IPO with Sebi in April. Its plan has evinced strong interest from global and domestic investors, including BlackRock, CPPIB, and SBI Mutual Fund.

Prosus, which owns a 31% stake in Swiggy through affiliate MIH India Food Holdings, is anticipated to recover more than half of its $1 billion investment by selling less than one-fifth of its holding.

Swiggy’s last private valuation was $10.7 billion in January 2022, after it raised $700 million in a round led by US asset manager Invesco. In June, 360 One, one of the investors in Swiggy, valued it at $11.5 billion, as per an internal report.

“They (Swiggy) will list at the upper end of the price band,” a person aware of the matter said.

Swiggy’s early investors like Accel, Elevation Capital and Norwest Venture Partners will sell a part of their holding through the OFS. Per a report from online news publication Entrackr, Chinese tech major Meituan has sold a $200 million block in a pre-IPO deal.

Swiggy founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy are also partially selling their stakes in the public offering.

Zomato is also planning to raise funds. The company recently received approval from its board to raise Rs 8,500 crore through a qualified institutional placement.