- Tuesday, November 05, 2024
The Bengaluru-based company is aiming to garner ₹113.30 billion from the initial public offering, and will invest in technology and cloud infrastructure
By: Shajil Kumar
AHEAD of its initial share sale, Swiggy’s Food Marketplace CEO Rohit Kapoor said the company as a whole is “very well positioned” and is looking at an organic growth trajectory for its quick commerce business Instamart.
The Bengaluru-based company is aiming to garner ₹113.30 billion (£1.04bn) from the initial public offering (IPO), which will open for public subscription on November 6 and conclude on November 8.
In an interview to PTI, Kapoor said Swiggy is “not very acquisitive in nature” but is open to pursuing inorganic growth through acquisitions for the quick commerce arm Instamart if something exciting comes along.
“We are not averse to acquisitions but it has to make immense sense for us and it cannot be only for the purpose of adding revenues. It has to be for certain competencies and benefits,” Kapoor said.
The IPO comprises fresh issue of shares worth ₹44.90 billion (£410.83m), along with an offer for sale (OFS) of ₹68.28 billion (£624.95m). The shares will be available for subscription in the price range of ₹371 to ₹390 apiece.
Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.
The issue comes amid a series of IPOs in the recent past, including South Korean car maker Hyundai’s mega ₹280 billion (£2.56bn) issue.
Founded in 2014, Swiggy has never had a full year of profits, but showed an operating profit in the June quarter. (PTI)
