The Bengaluru-based company had filed draft papers for the IPO with the Securities and Exchange Board of India (Sebi) through the confidential filing route in April this year.
Swiggy will now need to file an updated draft red herring prospectus (UDRHP) with the market regulator. A 21-day period will be provided for the public to give feedback on the UDRHP before launching the IPO.
The IPO is expected to raise ₹3,750 crore ($450 million) in fresh capital, along with an offer-for-sale (OFS) component of up to ₹6,664 crore ($800 million). The size could be increased before the launch, said bankers.
Major investors such as Prosus, Swiggy’s largest shareholder with a 33% stake, and SoftBank are likely to sell part of their holdings through the OFS.
Other key shareholders include Accel, Elevation Capital, Meituan, Tencent, Norwest Venture Partners, DST Global, Coatue, Invesco, and GIC.Swiggy declined to comment on queries from ET.In the first three quarters of FY24, Swiggy reported revenue of ₹5,476 crore with a loss of ₹1,600 crore. Its main competitor, Zomato, posted revenue of ₹12,114 crore for the year ended March 31, 2024, and turned profitable with a net profit of ₹351 crore during the same period.
Zomato raised ₹9,375 crore through its IPO in July 2021. The stock has surged 192% over the last year, compared to the Nifty’s 32% gain. Zomato’s shares, originally offered at ₹76 apiece during the IPO, closed at ₹291.70 on Tuesday.
Sebi introduced the ‘pre-filing’ route in 2022, allowing companies to keep details of preliminary filings confidential. This route provides companies with greater flexibility in determining the issue size. The number of fresh shares proposed can be adjusted by up to 50% until the updated DRHP is filed.