Swiggy Seeks $11.3 Bn Valuation As IPO Opens

Food delivery and quick commerce leader Swiggy is set to launch its initial public offering (IPO) on November 6, aiming for a valuation of approximately USD 11.3 billion (around Rs 95,000 crore) at the upper price band. This IPO will consist of a fresh issue of shares worth Rs 4,499 crore and an offer for sale (OFS) amounting to Rs 6,828 crore, collectively expected to raise Rs 11,327 crore.

As per reports, Swiggy, headquartered in Bengaluru, has set its price band at Rs 371-390 per share for this maiden public offering. The issue will open for subscription on 6 November and close on 8 November, targeting retail and institutional investors alike.

Swiggy’s Food Marketplace CEO, Rohit Kapoor, expressed confidence in the IPO’s pricing. "We feel we have priced it right, and we are looking forward to the next few days," Kapoor said, noting that the valuation will be finalised based on where the issue clears at the close of the offer.

The anticipated USD 11.3 billion valuation puts Swiggy in direct competition with its primary rival, Zomato, which went public in July 2021 and currently holds a market valuation of approximately Rs 2.13 lakh crore. Kapoor addressed recent media speculation regarding potential valuation adjustments, stating there had been no reduction in valuation before the IPO.

"This is all speculation in the media on what the value is. The fact is, the valuation remains exactly where it was intended to be. I just want to clarify that there has been no lowering of valuation per se," Kapoor told PTI. He added that the valuation was determined following a discovery process, and the pricing reflects a collective decision.

The Swiggy IPO joins a series of significant offerings on the Indian market, following other major IPOs, including Hyundai’s record-setting Rs 28,000 crore issue. Swiggy’s offering has attracted attention as it signals continued investor interest in India's burgeoning tech and ecommerce sectors.