Swiggy shareholders approve increase in IPO size to Rs 5,000 crore: Report
Notably, only the size of the primary issue has been increased to Rs 5,000 crore. The offer for sale (OFS) component will remain unchanged at Rs 6,664 crore
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The shareholders of IPO-bound Swiggy have reportedly approved the resolution to increase the size of the company's public issue from Rs 3,750 crore to Rs 5,000 crore.
According to the Moneycontrol report, a sister publication of Storyboard18, Swiggy has created a provision to increase the IPO size by Rs 1,250 crore which requires additional funds.
Citing sources, Moneycontrol said the shareholders approved the resolution to increase the IPO size during the Extraordinary General Meeting (EGM), held on October 3.
Notably, only the size of the primary issue has been increased to Rs 5,000 crore. The offer for sale (OFS) component will remain unchanged at Rs 6,664 crore.
The Bengaluru-based food delivery platform is slated to go public later this year.
The company made its draft red herring prospectus (DRHP) public on September 26. As per the DRHP, the losses of the company have widened by 8 percent to Rs 611 crore between April and June FY 2025 from Rs 564 crore in the same period last fiscal.
Swiggy's revenue from operation stood at Rs 3,222 crore in the first quarter of FY25 as against Rs 2,389.8 crore in the corresponding period of FY2024.
Swiggy's listed rival Zomato's revenue was up by 74 percent to Rs 4,206 crore year on year in Q1 FY25. Zomato also posted a profit of Rs 253 crore in the Q1 of the current fiscal.
Swiggy's quick commerce arm, Swiggy Instamart, revenue was up by 108 percent to Rs 374 crore in the Q1 FY25 while Zomato's Blinkit clocked revenue of Rs 942 crore (23 percent growth) during the same period.
Swiggy decreased its advertisement and sales expenditure by 26% to Rs 1850.79 crore in FY2024 from Rs 2501.16 crore in FY2023. In the quarter ended June 30, 2024, Swiggy spent Rs 445.3 crore on advertising and sales. In contrast, Zomato's advertisement and sales promotion expenses rose 17% YoY to Rs 1,432 crore in FY2024 and Rs 396 crore in Q1 FY2025. Swiggy emerged as the "most valuable brand in the Consumer Technology & Services Platforms" category and amongst the Top 25 most valuable brands in India, overall on the Kantar BrandZ Most Valuable Indian Brands Report 2024.
