Swiggy filed updated DHRP with SEBI. Plans to raise Rs 3,750 crore, while investors including Coatue, Accel, Elevation, Tencent, Alpha Wave, and Norwest plan to sell shares.

Updated DRHP Filed by Swiggy to Raise Rs 3750 crore

Swiggy, the food giant, filed an updated DHRP with SEBI on September 26. Rs 3,750 crore is to be raised with the fresh issue component, while the offer for sale will include 18.53 crore shares. Assuming the recent share purchase price of Rs 350 apiece approx., OFS component is expected to be around Rs 6,500 crore.

Coatue, Accel, Elevation, Tencent, Alpha Wave, and Norwest plan to sell shares, reducing ownership in Swiggy. The plan is to allow investors to make their way into the company while they bet on the long-term growth potential of the company and look to diversify from Zomato.

India’s food delivery market is estimated to be by 2030. Rs 2 lakh crore is a duopoly, with Zomato and Swiggy commanding 90% (approx.) of the food industry.

In 2021, Zomato went public, and now Swiggy is ready to join in the coming months.

Some key investors of Swiggy are,

• Prosus- 32%
• SoftBank- 8%
• Accel- 6%

Several other names part of the company’s shareholder list include Elevation Capital, Norwest, Tencent, Qatar Investment Authority (QIA), DST Global, and Singapore’s GIC.

In January 2022, when the company raised funds, the valuation of the company stood at $10.7 billion. In the past few months, the bankers seem to have expressed increased confidence in Swiggy being listed with a market capitalization or valuation of $10-13 billion approx.

Since SEBI approved the confidential DHRP of Swiggy being reported by Moneycontrol in April, it is expected to be the hot one in the market with high anticipations.

The preparation of the IPO began in November 2023, and since then, increased action with the secondary market has been seen by Swiggy. Family offices and HNIs are buying company shares ($9-9.3 billion) in secondary market transactions.

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