Swiggy IPO: After the disappointing listing of the mega-IPO of Hyundai Motor India and the ongoing turmoil in the stock market for the last one month, companies launching IPOs have become very cautious. Online food delivery company Swiggy has decided to reduce the company’s valuation in IPO by 10-16 percent due to deteriorating sentiments and fluctuations.
Swiggy is planning to launch IPO in November 2024. Earlier, the company had set a target of achieving $15 billion valuation through IPO. But now the company is aiming to achieve a valuation of $12.5-13.5 billion. Swiggy is preparing to raise $1.4 billion through IPO, which will be the second largest IPO to hit the Indian stock market after Hyundai Motor India’s IPO in the year 2024.
Strong selling has been seen in the stock market for the last one month. Foreign investors sold shares worth Rs 90,000 crore in October 2024 alone. On top of that, the poor listing of Hyundai Motor India has forced Swiggy to reduce its valuation. Now Swiggy wants to ensure that it decides the valuation of the company in the IPO in such a way that investors can get better returns on the listing of the IPO. Hyundai Motor India had fixed the issue price of Rs 1960 in its IPO and on the day of listing the shares closed at around Rs 1820 with a decline of 7.2 per cent.
According to the Reuters report, Swiggy’s listing on the stock exchanges can happen on November 13, 2024 and the company will launch its IPO in the week before that. At the end of September 2024, stock market regulator SEBI had issued its observation letter to Swiggy. Swiggy India had filed draft papers with SEBI to launch an IPO in April 2024. Swiggy had also filed an updated draft paper with the regulator, according to which the company will raise Rs 3750 crore through fresh issue i.e. issuing new shares and there is also a plan to raise Rs 6000 crore through Offer for Sale.
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