Bengaluru-based food delivery giant Swiggy is planning to file its initial public offering by the end of this fiscal.
The company is aiming to file the draft red herring prospectus with the Securities and Exchange Board of India by March-April. The size is yet to be decided and will be finalised days before the filing, according to two people familiar with the matter.
The issue may comprise an offer-for-sale along with a fresh issue, the people quoted above said on the condition of anonymity as details are not public yet.
The company will also possibly undertake pre-IPO placement between DRHP and RHP filing, the first of the two people quoted above said. Consumer internet giant Prosus, which owns about 32% of Swiggy, may also look to pare its stake through the issue.
The valuation of U.S.-based investor Invesco Inc.'s investment in Bundl Technologies Pvt.—the operator of food delivery giant Swiggy—was recently raised for the second time in a row after two markdowns over the past year.
It pegged the value of its roughly 2% stake in Swiggy at $147.6 million at the end of October 2023, up from $135.6 million as of July 2023, according to a Securities and Exchange Commission filing by one of Invesco's investment funds. That pegged its fair value at around $8 billion, as of October 2023, up from $7.85 billion.
Swiggy's food delivery business has turned profitable, Chief Executive Officer Sriharsha Majety said in May.
"As of March 2023, Swiggy's food delivery business has turned profitable (after factoring in all corporate costs, excluding employee stock option costs)... Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than nine years since its inception," Majety wrote in a blog post then.
In comparison, listed rival Zomato Ltd. turned profitable for the second consecutive quarter during the quarter ended September 2023. It is trading at a market capitalisation of Rs 1.11 lakh crore on the BSE, as of Wednesday.
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