HomeMarket NewsSwiggy secures ₹5,085 crore from anchor investors at ₹390 per share ahead of IPO
Domestic institutions took up 56% of the anchor book, including eight of the top 10 mutual funds, such as SBI MF, ICICI Prudential MF, Kotak MF, Mirae MF, and Nippon MF.
Food and grocery delivery major Swiggy Ltd on Tuesday (November 5) raised ₹5,085.02 crore from anchor investors at the upper price band of ₹390 per share, ahead of its highly anticipated IPO. With participation from over 75 anchor investors, the allocation saw robust interest from both domestic and international institutional investors.
Domestic institutions took up 56% of the anchor book, including eight of the top 10 mutual funds, such as SBI MF, ICICI Prudential MF, Kotak MF, Mirae MF, and Nippon MF. Leading insurance firms, including ICICI Prudential Life, HDFC Life, and SBI Life, also participated.
Global investment was strong, with allocations to major international mutual funds like Capital, Fidelity, FMR, Blackrock, and Schroders. Sovereign wealth and pension funds, such as Norway’s Norges Bank, Canada’s BCI, and the UK’s USS, also backed the IPO. Domestically, pension funds like SBI Pension and ICICI Pension showed confidence.
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Swiggy’s anchor investor list includes firms across EMEA (Carmignac, BNP Paribas), the US (PIMCO, Allianz Global, Matthews, Loomis, Amundi), and Asia (HSBC, Nomura, Eastspring). Leading multi-strategy funds, including Millennium, Marshall Wace, Jane Street, Citadel, and Ghisallo, also participated.
The anchor round saw renewed commitment from existing investors and pension funds like Carmignac, Ghisallo, Mirae Group, Motilal Oswal Group, Kotak Group, Axis Group, 360 One Group, SBI Pension and ICICI Pension.
The ₹11,327 crore IPO comprises a fresh issue of 11.54 crore shares aggregating to ₹4,499 crore, while existing shareholders will sell up to 17.5 crore shares aggregating to ₹6,828 crore. The company has fixed a price band in the range of ₹371-390, where investors can bid for 38 shares in one lot.
Swiggy has reserved 7.5 lakh shares for its employees. Additionally, up to 75% of the net offer has been set aside for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.
The company will use ₹1,343.5 crore out of net fresh issue proceeds for investment in its subsidiary Scootsy, and ₹703 crore for investment in technology and cloud infrastructure. Furthermore, ₹1,115 crore will be spent on brand marketing and business promotion expenses, with the remainder allocated for inorganic growth and general corporate purposes.
The ₹11,327 crore IPO, if successful, will position Swiggy alongside some of the country’s largest public listings, including the record-breaking ₹27,856 crore Hyundai Motor India’s IPO earlier this month.
