The initial public offering (IPO) of Swiggy, a leading food delivery company, is set to open to investors this month. Investors have been eagerly waiting for Swiggy's IPO for a long time and now after getting approval from Indian market regulator Sebi, the company has shared information about its IPO date and price band.
According to media reports, Swiggy's IPO will open on 6 November 2024 and close on 8 November 2024. Price band per share Rs. 371 to Rs. 390 has been decided between. However, Swiggy is yet to officially confirm this information. Swiggy IPO raised Rs. 11,300 crore plans to raise, of which Rs. 4,500 crore fresh issue and Rs. 6,800 crore includes an Offer for Sale (OFS).
Swiggy filed the draft papers using the confidential pre-filing route and now the IPO documents are also clear about where the company will use the funds. Swiggy will invest a large portion of the proceeds from this IPO to pay down the debt of its subsidiary Scooty. Apart from this, he will also invest in the expansion of Scooty's dark store network and the company's technology and cloud infrastructure.
Out of the IPO amount Rs. 586.20 crore will be spent on technology and cloud infrastructure, while Rs. 929.50 crore has been earmarked for brand marketing and business promotion. The proceeds will help the company strengthen its grip on the Indian market and maintain its competitive edge.
According to global startup data platform Traxon, Swiggy's current valuation has reached US $13 billion. The company's annual revenue is close to US $1.09 billion, indicating that Swiggy's position in the food delivery space is very strong. The proceeds from the IPO will help Swiggy in its growth plans, particularly in expanding dark stores and reducing its debt burden.
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