Swiggy IPO: Firm Secures Shareholder Approval To Boost Fresh Issue Size To Rs 5,000 Crore

Swiggy IPO: While Swiggy’s shareholders will offload shares worth Rs 6,664 crore, the overall offering will now increase to $1.4 billion, up from the earlier estimate of $1.25 billion

Swiggy IPO: Indian food delivery giant Swiggy, backed by SoftBank, has received shareholder approval to increase the size of the fresh issue in its initial public offering (IPO) to Rs 5,000 crore ($595 million), up from Rs 3,750 crore, sources familiar with the matter told news agency Reuters. The move further strengthens the company’s IPO plans amid a booming market in India.

India's IPO market has been particularly active this year, with around 250 companies raising over $9 billion so far, more than double the amount seen during the same period in 2023, as per data from LSEG.

While Swiggy’s shareholders will offload shares worth Rs 6,664 crore as part of the IPO, the overall offering will now increase to $1.4 billion, up from the earlier estimate of $1.25 billion. This positions Swiggy's IPO as the largest in India this year, surpassing NTPC Green Energy’s $1.2 billion public offering.

Swiggy, which filed its draft IPO papers last week, is reportedly seeking a valuation of $15 billion. The company plans to use funds from the fresh issue to expand its rapid-delivery service, Instamart, which competes with Zomato and Zepto in the quick-commerce space, where 10-minute grocery and electronics deliveries are becoming the norm.

In addition to its food delivery business, Swiggy is positioning itself to capture a larger share of the quick-commerce sector, which is increasingly competitive.

Meanwhile, Bollywood star Madhuri Dixit has made a strategic investment in Swiggy ahead of its highly anticipated public debut. Alongside Innov8 founder Ritesh Malik, the duo jointly invested Rs 3 crore in the company, each contributing Rs 1.5 crore. Amitabh Bachchan's family office has also acquired a small stake in Swiggy, though the financial details of the deal remain undisclosed.

Swiggy declined to comment on the developments when contacted by Reuters.