Swiggy's Early Investors Dilute Stakes Ahead Of Expected IPO: Report

In the run-up to Swiggy’s expected IPO later this year, early investors in the food delivery behemoth are selling their stakes in secondary transactions.

What Happened: Early investors such as Prosus, Accel and Elevation Capital are partially diluting their stakes in Swiggy, Moneycontrol reported. These shares are being snapped up by new investors, including asset and wealth management firms like 360 One, and high net-worth individuals (HNIs).

These secondary transactions, which are typical in the lead-up to an IPO, are taking place at a rate of ₹330-350 per share, giving Swiggy a valuation of $9.3 billion (around ₹77,637 crore). This valuation is a tad lower than the $10.7 billion (around ₹89,324 crore) valuation Swiggy received during its 2022 fundraise.

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Prosus, which holds around 33% of Swiggy, is likely to reduce its stake to 25% or less to avoid being labelled as a promoter when the company is listed on the stock exchange.

Despite the secondary transactions occurring at a discount, bankers remain confident that Swiggy will list with a market capitalisation of around $10-13 billion (around ₹83,480 crore to ₹1,08,525 crore).

Swiggy, which began its IPO process in March 2022, has garnered over $3.6 billion (around ₹30,053 crore) from investors since it was founded in 2014. It plans to raise ₹10,000 crore from the IPO and has collected around ₹750 crore from anchor investors in the pre-IPO round.

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