Swiggy likely to price Rs 11,350 crore IPO at Rs 371-390 per share

Indian food delivery giant Swiggy will likely price its $1.35 billion (Rs 11,350 crore) domestic initial public offering, which opens next week, at Rs 371-390 per share, sources with direct knowledge of the matter told Reuters.

The IPO will open for subscription from November 6 to November 8, the company's red herring prospectus dated Monday showed. Anchor investors will bid for shares on November 5.

Swiggy is expected to list its shares on November 13.

The share sale will be the country's second-biggest stock offering this year, behind Hyundai Motor India's $3.3 billion IPO earlier this month, which had seen subdued interest from retail investors.

The food and grocery delivery firm, which competes with listed rival Zomato, will sell new shares worth Rs 4,499 crores ($535.14 million), more than the Rs 3,750 crore originally planned.

Existing shareholders including Prosus and Tencent are selling a total of 175.1 million shares.

Swiggy has in recent weeks cut its internal valuation goal twice by a combined 25 per cent due to volatility in the Indian stock markets. It was initially looking at a valuation of as much as $15 billion (Rs 1.26 lakh crore), but following those cuts, it is now targeting $11.3 billion (Rs 95,000 crore).

Swiggy did not respond to a Reuters request for comment.

India's benchmark Nifty 50 index is now down more than 8 per cent from record highs hit on Sept. 27 due to persistent foreign selling.

Despite recent jitters, India's IPO market has been buoyant, with around 270 companies raising $12.57 billion (Rs 1.05 lakh crore) so far this year, well above the $7.4 billion (Rs 62,217 crore) raised in all of 2023, LSEG data showed.

($1 = 84.0720 Indian rupees)