Food delivery firm, Swiggy, is reportedly looking to enlarge the size of its maiden offering and raise more capital via a fresh issuance of equity, media reports said.
The company is all set to increase the size of its initial public offering (IPO) via another issue of fresh shares, reported Moneycontrol based on an internal set of documents.
Swiggy earlier expected to raise Rs 3,750 crore through equity, however, now the delivery giant aims to issue additional shares coming up to Rs 5,000 crore, marking a gain of Rs 1,250 crore. The initial maiden issue of the firm comprised a fresh issue worth Rs 3,750 crore and an offer-for-sale (OFS) of up to Rs 6,664 crore.
However, if the firm’s board approves the revised proposal for the IPO, the overall size of the issue will be around $1.4 billion. The board will be deciding on the proposal in its extraordinary general meeting (EGM) scheduled for October 3, 2024. The report noted that no changes have been suggested yet to the OFS part of the maiden listing.
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Notably, the company reported a growth in its financial performance recently. The firm clocked a revenue of Rs 11,247 crore in the 2023-24 fiscal year, climbing by 36 per cent from Rs 8,265 crore recorded in the preceding 2022-23 fiscal year (FY23). The company also managed to narrow its losses during the period to Rs 2,350 crore in FY24, improving by 44 per cent from Rs 4,179 crore logged in the year-ago period. A better control of expenses by the company during the period helped it in making recovery in fiscal performance.
Meanwhile, the company’s competitors such as Zomato and Blinkit have seen a rise in profitability and clocked an increase in market capitalisation as well. Zepto has also attracted investors and raised $1 billion in the last two months.