The country's largest food delivery platform Swiggy is bringing its IPO. According to the information, the size of the company's IPO will be Rs 10,400 crore. According to sources, Swiggy has received approval from the market regulator for its proposed public issue of $1.25 billion i.e. Rs 10,400 crore. The Bengaluru-based company had filed draft papers for the IPO with SEBI through the confidential filing route in April this year.

Both fresh equity and OFS included

Swiggy will now have to file an updated draft red herring prospectus (DRHP) with the market regulator. The public will be provided a period of 21 days to provide feedback on the UDRHP before the IPO is launched. The IPO will consist of both fresh equity and OFS. The fresh equity is expected to be valued at Rs 3,750 crore ($450 million) and the OFS component at Rs 6,664 crore ($800 million).

Who can sell shares?

Bankers say the size may be increased before the launch. Major investors such as Prosus and SoftBank, Swiggy's largest shareholder with a 33 percent stake, are likely to sell part of their stake through OFS. Other major shareholders include Accel, Elevation Capital, Meituan, Tencent, Northwest Venture Partners, DST Global, Coatue, Invesco and GIC. No official statement has been issued by Swiggy in this matter.

Zomato has given strong returns

In the first three quarters of FY24, Swiggy reported a revenue of Rs 5,476 crore with a loss of Rs 1,600 crore. Its main rival, Zomato, generated a revenue of Rs 12,114 crore for the year ended March 31, 2024. It turned profitable with a net profit of Rs 351 crore during the same period. Zomato had raised Rs 9,375 crore through its IPO in July 2021. The stock has gained 192 per cent over the past year, compared to Nifty's 32 per cent gain. Zomato's issue price was Rs 76 which has risen to Rs 291.70.

SEBI introduced the 'pre-filing' route in 2022, allowing companies to keep the details of initial filings confidential. This route provides companies with greater flexibility in determining the issue size. The number of new shares proposed can be adjusted by up to 50 per cent until the updated DRHP is filed.