Swiggy IPO: Who Are Selling Shareholders In The IPO, And What Is Bidding Limit For Investors?

Swiggy IPO: The most anticipated IPO is taking a step closer to reality as India's leading online food delivery and quick service company, Swiggy has filed an updated draft to raise to Rs 3,750 crore via fresh issue. The IPO will also include an offer for the sale of up to nearly 18.53 crore equity shares. A host of shareholders will be partaking in the OFS. But that is not all, to be eligible for Swiggy IPO, investors will be required to keep a check on the investment limit.

Swiggy's latest draft filing includes a fresh issue of Rs 3,750 crore and OFS of 185,286,265 equity shares.

Who are the shareholders that will participate in Swiggy's IPO offer for sale?

1. Accel India IV (Mauritius) to sell up to 10,572,706 equity shares.

2. Apoletto Asia to sell up to 1,696,504 equity shares.

3. Alpha Wave Ventures to sell up to 5,573,473 equity shares.

4. Coatue PE Asia XI LLC to sell up to 3,885,413 equity shares.

5. DST EuroAsia V B.V. to sell up to 5,621,668 equity shares.

6. Elevation Capital V to sell up to 7,396,253 equity shares.

7. Inspired Elite Investments to sell up to 6,747,246 equity shares.

8. MIH India Food Holdings B.V. to sell up to 118,215,233 equity shares.

9. Norwest Venture Partners VIIA - Mauritius to sell up to 6,406,307 equity shares.

10. Tencent Cloud Europe B.V. to sell up to 6,327,243 equity shares.

What is the investment limit in Swiggy IPO?

Of the total issue size, 75% of the IPO will be allocated to qualified institutional buyers (QIBs), while 15% of the offer will be reserved for non-institutional investors(NIIs) and the rest of 10% will be allotted to retail individual investors (RII).

1. Qualified Institutional Buyer: As per the latest draft, a QIB applying under the Anchor Investor Portion can bid at least Rs 100 million. From the reserved portion for QIB, 60% will be allotted to anchor investors under which one-third will be reserved for mutual fund investors.

2. Non-institutional investors (NIIs): Since 15% is reserved for overall NIIs, of which, one-third of the portion available to NIBs shall be reserved for Bidders with application size of more than ₹200,000 and up to ₹1,000,000. Meanwhile, two thirds of the portion available to NIBs shall be reserved for Bidders with an application size of more than ₹1,000,000.

3. Retail Individual Investors: These investors are allotted 10% of the total IPO size, and the bidding amount for them should not be more than Rs 2,00,000.

According to the Redseer report, Swiggy's platform can be used to make restaurant reservations ("Dineout") and for events bookings ("SteppinOut"), avail product pick-up/ dropoff services ("Genie") and engage in other hyperlocal commerce (Swiggy Minis, among others) activities. Being among the first hyperlocal commerce platforms, Swiggy has successfully pioneered the industry in India, launching Food Delivery in 2014 and Quick Commerce in 2020, due to the pioneering status of Swiggy, it is well-recognised as a leader in innovation in hyperlocal commerce and as a brand synonymous with the categories it is present in.

Swiggy offers comprehensive business enablement solutions to restaurant partners, merchant partners (that sell grocery and household items on its platform) and brand partners including our alliance partners such as analytics-backed tools to enhance their online presence and user base; fulfilment services for streamlining their supply chain operations; and last-mile delivery.