In anticipation of Swiggy’s much-awaited IPO later this year, early investors in the food delivery giant are selling portions of their stakes through secondary transactions, according to media reports.
As per reports, early backers like Prosus, Accel, and Elevation Capital are partially reducing their holdings in Swiggy. These shares are being acquired by new investors, including asset and wealth management firms such as 360 One, as well as high net-worth individuals (HNIs).
These secondary transactions, a common practice in the lead-up to an IPO, are being executed at a price range of Rs 330-350 per share, valuing Swiggy at approximately USD 9.3 billion (around Rs 77,637 crore). This valuation is slightly lower than the USD 10.7 billion (around Rs 89,324 crore) valuation Swiggy achieved during its 2022 fundraising round.
Prosus, which currently owns about 33 per cent of Swiggy, is expected to reduce its stake to 25 per cent or less. This strategic move aims to prevent Prosus from being classified as a promoter when Swiggy is listed on the stock exchange.
Despite these secondary transactions occurring at a discount, financial experts remain optimistic that Swiggy will debut with a market capitalisation between USD 10-13 billion (around Rs 83,480 crore to Rs 1,08,525 crore).
Swiggy began its IPO process in March 2022 and has since attracted over USD 3.6 billion (around Rs 30,053 crore) in investments since its inception in 2014. The company plans to raise Rs 10,000 crore through the IPO and has already secured approximately Rs 750 crore from anchor investors in the pre-IPO round.
The move by early investors to partially exit ahead of the IPO is seen as a sign of confidence in Swiggy's growth trajectory and the overall health of the Indian food delivery market. As Swiggy gears up for its public listing, the company's performance will be closely watched by both investors and market analysts.
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