Swiggy IPO: Food delivery, quick commerce giant raises nearly ₹5,085 crore via anchor investors ahead of public issue

Swiggy Limited, the online food delivery and quick commerce firm, on Tuesday said it has raised around ₹5,085 crore from investors in its anchor round, ahead of the company’s proposed initial public offering (IPO), according to the company’s exchange filing.

As per the exchange filing, the company has allocated 13,03,85,211 or 13.03 crore equity shares to the anchor investors at an allocation price of ₹390 per share to 75 anchor investors at a face value of Re 1 per share. 

The anchor investor pool in Swiggy‘s public issue includes ICICI Prudential Mutual Fund, Kotak Mutual Fund, SBI Mutual Fund, Mirae Mutual Fund, Nippon Mutual Fund, Axis Mutual Fund, and others. More than half of the anchor book participation was from domestic investors.

Amongst the global funds and the large global sovereign wealth and pension funds were Capital Group, Fidelity Investments, Fidelity Management & Research (FMR), Blackrock, Schroeder’s, Allianz Global, HSBC, Nomura Funds, Citadel, and Government Pension Fund Global.

Anchor investors from the United States, EMEA region, and Asia invested in the public issue. 

As per the exchange filing data on Tuesday, Government Pension Fund Global at 4.46 per cent, Nomura Funds Ireland at 4.13 per cent, New World Fund at 3.91 per cent, SBI Life Insurance at 2.48 per cent, ICICI Prudential Life at 2.48 per cent Mirae Asset at 2.48 per cent, were the top anchor investors in the anchor issue.

The food delivery and quick commerce firm also said that 40.65 per cent of the allocation to anchor investors was allocated to 19 domestic mutual funds through a total of 69 schemes, according to the exchange filing.

About Swiggy IPO

Swiggy Limited uses technology to offer multiple services, including food delivery, quick commerce (Instamart) for groceries and other items, out-of-home restaurant reservations (Dineout), event bookings (SteppinOut), and product pick-up/drop-off services (Genie). 

The public offer will open for public subscription on Wednesday, November 6, and will close on Friday, November 8. The IPO is expected to be listed on Wednesday, November 13. 

Swiggy’s grey market premium (GMP) is at ₹12, as of November 5. With the upper price band at ₹390 per share, the IPO is expected to be listed 3.08 per cent higher at ₹402, according to Investorgain.com. 

Grey market premium (GMP) is the investor’s willingness to pay more for a public issue. 

The company has set the price band for the IPO in the range of ₹371 to ₹390 per share, with a lot size of 38 shares per lot. Swiggy aims to use the money raised from the public issue to fund investment in the material subsidiary, Scootsy, investment in technology and cloud infrastructure, and brand marketing.

It also aims to use it for business promotion expenses which will enhance brand awareness and visibility of its platform across segments. The company aims to fund inorganic growth through unidentified acquisitions and use the remaining proceeds for general corporate purposes.