Swiggy IPO Gets Sebi Nod, Nov Launch Likely

Samie Modak/Business Standard

Food delivery major Swiggy has been given the go-ahead by the Securities and Exchange Board of India (Sebi) to launch its much-anticipated initial public offering (IPO), according to people in know.

The company -- backed by major investors like Prosus, SoftBank and Accel, and valued $9.3 billion as of August 2023 -- submitted its offer document on April 30 this year using the confidential pre-filing route, meaning details have been kept under wraps for now.

However, reports suggest Swiggy is looking to raise Rs 11,000 crore (Rs 110 billion), with a fresh issue worth Rs 5,000 crore (Rs 50 billion).

According to sources, Swiggy is eyeing a November launch for its IPO.

Before the IPO hits the market, Swiggy must place its updated draft red herring prospectus (UDRHP) before the public for at least 21 days. During this window, the public is allowed to provide feedback on the offer document, and after that the firm can proceed with its IPO.

If all goes to plan, Swiggy will become the second food delivery firm to list on the stock exchanges, following Zomato, which is currently valued at Rs 2.6 trillion with its share price surging 2.3 times this year alone.

Also, Swiggy will become the first company to go public via the confidential filing route.

So far, only three other firms have opted for this path: Partners Group and Kedaara Capital-promoted Vishal Mega Mart, Softbank-backed Oyo, and Tata Play. None of them have been able to come out with an IPO.

Introduced in 2022, the confidential filing route allows companies to keep their draft red herring prospectus private until they finalise their listing plans. This strategy not only protects sensitive information, but also shields issuers from unwarranted public scrutiny and opportunistic litigation.