SoftBank-backed and one of the most valuable unicorns in India, Swiggy, is expected to submit its draft red herring prospectus to the country’s market regulator SEBI, by the first week of September, making it the second-largest venture capital-backed IPO in history.
According to YourStory, citing two people aware of the knowledge, the food delivery and quick commerce platform is expected to raise Rs 10,400 crore (USD 1.28 billion) through its initial public offering, making it the only venture capital-backed startup to surpass Rs 10,000 crore in a public listing after Paytm.
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‘We are entering the DRHP phase, and by the first week of September, it should be filed.’ Unless they (SEBI) want something more, ‘we are looking at a two-month timeline for SEBI clearance once it is filed,’ one of the two sources cited in the YourStory added, keeping the anonymity.
‘We are working towards getting listed this fiscal year, which is the idea.’ As a general rule, considering Swiggy’s profitability and revenue, its valuation will be 60 per cent of Zomato’s market capitalisation, reported YourStory.
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Swiggy’s valuation
“Thus, to give an estimate, Swiggy’s valuation in that context will be between USD 15 and USD 16 billion,” added YourStory report.
As of Monday, Zomato’s market valuation was more than USD 27 billion (Rs 2.28 trillion).
As per the report, Swiggy filed documents with the Securities and Exchange Board of India (SEBI) in April for an initial public offering (IPO) valued at Rs 10,400 crore.
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Details under wraps clause
Businesses may choose to keep the specifics of their preliminary filings confidential under the SEBI-introduced confidential route in 2022. By taking this route, businesses can also modify their proposed number of new shares by up to 50 per cent until a revised DRHP is filed.
The company’s financials, business plan, and risks are all outlined in the DRHP, an initial document filed with SEBI. However, it omits information about the number of shares and the final price.
Last draft filed by Swiggy
Swiggy received shareholder approval in April, shortly before it quietly submitted draft documents for its initial public offering (IPO), which included a new issue of Rs 3,750 crore, or USD 450 million, and an offer for sale worth Rs 6,664 crore, or roughly USD 800 million. Additionally, Swiggy plans to raise USD 90 million, or Rs 750 crore, in a pre-IPO anchor round.
