Founded in 2014, Swiggy had a valuation of nearly $ 13 billion in April.
Food delivery and quick commerce giant Swiggy is targeting a $10 billion or 83,365 crore valuation with a Rs 10,000-crore initial public offering (IPO). Out of this, the company seeks to raise Rs 3,750 crore from fresh issues.
On Wednesday, it came to light that Swiggy had received clearance for the IPO from markets regulator SEBI and the company said on Thursday that it aims to raise Rs 3,750 crore through fresh issues.
In its updated draft red herring prospectus, the Bengaluru-based company has said existing shareholders, including Tencent Europe and Accel India, will sell approximately 18.5 crore shares as part of an offer of sale (OFS). With the OFS, the IPO size will reportedly be over Rs 10,000 crore.
Founded in 2014, Swiggy, which is backed by Japan's Softbank and investment group Prosus, had a valuation of nearly $ 13 billion in April this year and has over 4,700 employees.
According to news agency Reuters, Swiggy's listing comes amid a booming IPO market, with 198 companies having raised $7.1 billion in the year up to September 4, which is more than double the amount in the same period last year.
Rs 137.41 crore of the proceeds from the fresh issue will be used for debt payment of subsidiary Scootsy, news agency PTI reported, citing the IPO papers. Rs 982.4 crore will also be invested in Scootsy to expand the dark store network in the quick commerce segment, with Rs 559.1 crore allocated for setting up dark stores and the remaining for lease or license payments.
The company will also invest Rs 586.2 crore in technology and cloud infrastructure, Rs 929.5 crore in brand marketing and business promotion, and some funds will also be allocated for inorganic growth and general corporate purposes.
Swiggy's main competitor, Zomato, had gone public in 2021 and its shares have been among the top performers in the past 12-15 months.
Track Latest News Live on NDTV.com and get news updates from India and around the world
