Swiggy IPO: The initial public offering (IPO) of Swiggy, a food delivery company that takes online orders, is going to open today on Wednesday. The company wants a valuation of about $ 11.3 billion under the IPO. The Bengaluru-based company wants to raise Rs 11,327 crore from the IPO, which includes issue of new shares worth Rs 4,499 crore and OFS worth Rs 6,828 crore. Swiggy has fixed the price band of Rs 371 to Rs 390 per share for the IPO. This issue will close on November 8. The company has raised about Rs 5085 crore in the anchor round. On Wednesday morning, the company's shares were seen trading at a premium of Rs 12 against the issue price of Rs 390 in the gray market.
Valuation of Rs 95,000 crore
Rohit Kapoor, CEO of Swiggy Food Marketplace, said about the valuation, “We think we have priced it right and we are looking forward to the next few days.” Swiggy's valuation is in the upper price band of about US 11.3 billion. Dollar (approximately Rs 95,000 crore). Its rival Zomato, which was listed in July 2021, has a market valuation of Rs 2.13 lakh crore. “Our valuation is in the range of Rs 371-390 per share, which is equivalent to about $11.3 billion,” Kapoor said in an interview.
Has the valuation been reduced?
When asked about media reports regarding reduction in Swiggy's valuation, Kapoor clarified that there has been no reduction in valuation as the actual value of the company is determined when the transaction actually takes place. “There is all this speculation in the media about the price,” he said. So the fact of the matter is that the price has neither increased nor decreased. The value is exactly where it should be. I just want to put it clearly on record that there has been no reduction in valuations. There was a search process and ultimately we settled on a value that we collectively feel very good about.”
Image Credit: India-Tv.