Swiggy gets Sebi nod for IPO launch

Food delivery major Swiggy has received the green light from the Securities and Exchange Board of India (Sebi) to launch its highly anticipated initial public offering (IPO), according to sources familiar with the matter. The company, backed by prominent investors such as Prosus, SoftBank, and Accel, and valued at $9.3 billion as of August 2023, submitted its offer document on April 30 this year using the confidential pre-filing route. This means that specific details have been kept under wraps. However, reports indicate that Swiggy aims to raise Rs 11,000 crore, including a fresh issue worth Rs 5,000 crore.

Swiggy is targeting a November launch for its IPO. Before it can proceed, the company must place its updated draft red herring prospectus (UDRHP) in the public domain for at least 21 days. During this period, the public can provide feedback on the offer document. Once this feedback window closes, Swiggy can move forward with its IPO plans.

If everything goes according to plan, Swiggy will become the second food delivery firm to be listed on the stock exchanges, following Zomato. Zomato is currently valued at Rs 2.6 trillion, with its share price having surged 2.3 times this year alone. Additionally, Swiggy will be the first company to go public via the confidential filing route. Previously, only three other firms—Vishal Mega Mart, Oyo, and Tata Play—have chosen this path.

The confidential filing route, introduced in 2022, allows companies to keep their draft red herring prospectus private until they finalize their listing plans. This strategy helps protect sensitive information and shields issuers from unwarranted public scrutiny and opportunistic litigation.