India’s 5th Largest IPO Gets a Greenlight from SEBI

5th largest IPO in India, Swiggy, gets a nod from SEBI. Gaining the green light, the food and grocery delivery company is expected to scale up the IPO size to around 11,700 crore (approx. $1.4 billion).

After Paytm, this is the 2nd largest IPO. The startup based in Bengaluru filed the draft IPO papers under a confidential route. The papers were filed in April and have now received comments from SEBI. As per TOI sources, Swiggy is likely to launch the roadshows in the upcoming days to tap into the stock market boom.

An updated draft red herring prospectus is expected to be filed by Swiggy with SEBI. Shareholders meeting is planned in October’s first week, for upsizing the offer size, as per TOI. In comparison to the Rs 9375-crore issue of Zomato, an archrival, Swiggy's IPO is expected to be bigger in the issue.

Backed by SoftBank and Prosus, Swiggy will soon join startups like FirstCry and Ola Electric to make their debut with public issues this year.

Indian IPO market, it has been on the upswing, with companies rushing to get listed. As the US Fed continues cutting the rates, the overseas flow of investment is expected to go up with time, allowing the Indian economy to have a firm hold amidst the global slowdown.

With the Swiggy IPO issue date unknown, Diwali is expected to be a good time for public offers. As of August 10, companies up to date have raised approximately Rs 17,047 crore, making it a busy period after May 2022 for public offerings.

2021 launched Zomato’s IPO got a stellar response from the investors. It has led startups like Nykaa and Paytm to launch their IPOs during the period, too.

In Swiggy's Shared annual report to investors (not public) previously this month, Swiggy stated that it had narrowed down its consolidated losses of Rs 2350 crore (FY24) from Rs 4179 crore (FY23). Its revenue from the operations also showed growth to Rs 11,247 (FY24) from Rs 8264.6 crore (FY23), marking a year-on-year increase of around 36%. With these positive developments, the investors definitely will be more interested in the upcoming IPO, thereby allowing Swiggy to be optimistic about the launch.

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