(Image source from: x.com/Swiggy)
Popular Swiggy Food and Food Delivery Platform plans to raise Rs 5,000 Crores in its future IPO through a new number. The company intends to gain shareholder approval for the increase at its Extraordinary General Meeting (EGM) scheduled for October 3, and the announcement was made to shareholders in an official statement. The Bangalore-based company had earlier planned to raise Rs 3,750 and additional Rs 6,664 with the new release. However, this revised figure of 5,000 crows is subject to change as the final size of the initial share offering depends on the approval of additional shareholders. Swiggy has previously submitted its draft book to the Indian Stock Exchange (SEBI). The company's board initially granted its first public delivery license in April this year. The latest move to raise more funds comes as Swiggy continues to consolidate its position in the competitive grocery market.
Last week, Swiggy announced its financial results for the year ended March 31, 2024, showing a 36 percent increase in operating revenue at Rs 11,247 crore. However, the company still recorded 2350 net losses, a decline of 44% compared to the previous year. Swiggy has tough competition in both the main grocery delivery space and quick-service retail space. While the company competes with Zomato in the food delivery space, its quick business arm competes with Blinkit (owned by Zomato), Zepto, Flipkart Minutes and Bigbasket Tata Digital. On the eve of the IPO, Swiggy also conducts some secondary transactions where new investors purchase shares.
One of the transactions took place on August 28, when Bollywood star Amitab Balchan's family office bought a small share of Sigi over a stock owned by early employees and investors. Similarly, Motilal OSWAL Financial Services chief Ramdeo AGRAWAL and automobile manufacturer Hindustan Composites also acquired the company's shares. With these developments, Swiggy's IPO becomes one of the most anticipated public offerings in recent times. The company's decision to attract additional capital through a new number demonstrates its aim to improve its financial position as it prepares for the public markets. However, the exact final figures for the IPO do not have to wait for shareholder approval.
