Swiggy files updated draft papers for IPO; eyes Rs 3,750 crore via fresh issue

New Delhi: Food and grocery delivery major Swiggy on Thursday filed its updated draft papers with capital markets regulator Sebi to raise funds through its much-anticipated initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares worth Rs 3,750 crore and an offer-for-sale (OFS) of 18.52 crore equity shares by existing shareholders, according to the updated draft red herring prospectus (UDRHP).

Market sources have pegged the company's IPO size at over Rs 10,000 crore.

Those selling shares in the OFS route are -- Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V BV, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings BV, Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe BV.

Also, the company is looking to mobilise up about in a pre-IPO round. If this occurs, the size of the fresh issue will be reduced accordingly.

The updated draft filing comes after Swiggy's confidential offer document was approved by Sebi earlier this week. The company filed its offer document on April 30 through the confidential pre-filing route.

Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it. Thereafter, the company going public is required to file an update to the confidential DRHP (UDRHP-I) after incorporating the regulator's comments. This UPDRHP-I is made available for public comments over 21 days.

Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

Swiggy can launch its IPO once the final prospectus is filed.

Going by the IPO papers, proceeds from the fresh issue to the tune of Rs 137.41 crore will be used for debt payment of subsidiary Scootsy.

Additionally, Rs 982.40 crore will be invested in Scootsy to expand the Dark Store network in the Quick Commerce segment, with Rs 559.10 crore allocated for setting up Dark Stores and Rs 423.30 crore for lease or license payments.

The company will also invest Rs 586.20 crore in technology and cloud infrastructure, Rs 929.50 crore for brand marketing and business promotion, and funds will be allocated for inorganic growth and general corporate purposes.

Founded in 2014, Swiggy had a valuation of nearly Rs 1,08,681 crore ($13 billion) in April. The company's annual revenue stood at Rs 9 crore ($1.09 billion) as of March 31, 2023, and has more than 4,700 employees, according to Tracxn, a global startup data platform.

In April, sources had previously stated that Swiggy received shareholders' approval for an IPO to raise Rs 10,414 crore fund through the issue of fresh equity shares and an offer for sale.

A special resolution was passed at an extraordinary general meeting of Swiggy on April 23, they stated.

Sources had stated that the Bengaluru-based company plans to garner up to Rs 3,750 crore funds through fresh equity shares, in addition to an offer-for-sale component of up to Rs 6,664 crore.