Online food delivery platform Swiggy has cut its IPO valuation. The new valuation is 11.3 billion dollars (95 thousand crore rupees), which is about 25% less than the previous valuation. Earlier there was news that the company will bring IPO at a valuation of $ 15 billion (about Rs 1.26 lakh crore).
According to a Reuters report, the company has taken this decision considering the fluctuations in the market, the poor start of Hyundai India's IPO and the uncertainty of the presidential elections in America.
BlackRock and CPPIB will invest Rs 11,774 crore
According to the report, BlackRock and Canada Pension Plan Investment Board (CPPIB) will invest $ 1.4 billion (Rs 11,774 crore) in this IPO. This will be the second largest stock offering in the country this year.
Indian stocks have continued to fall for four consecutive weeks, the longest decline since August 2023. Due to continuous foreign selling, the Nifty-50 index is down more than 8% from the record high of September 27.
Swiggy's IPO may come in November
Swiggy had filed confidential papers for IPO in April this year. Once again on September 26, the company filed an updated draft.
According to the updated filing, the company will issue fresh shares worth Rs 3,750 crore, in which existing shareholders will sell shares worth Rs 18.52 crore through Offer for Sale i.e. OFS.
According to media reports, after getting approval from the market regulator, the company can launch IPO in November this year.
Swiggy's revenue to increase by 36% in FY 2024
Meanwhile, the financial condition of Swiggy has also improved. Swiggy's revenue increased by 36% to Rs 11,247 crore in FY 2024, from Rs 8,265 crore in its previous financial year.
During this period, the company also reduced its losses by 44% and in the financial year 2024 it stood at Rs 2,350 crore, which was Rs 4,179 crore in the previous year. The company has been helped in reducing losses by keeping its costs under control.
Although Swiggy's performance is lower than that of Zomato, it has still narrowed the gap to its rival in FY24. Zomato recorded revenue of Rs 12,114 crore in FY24, while Swiggy's revenue stood at Rs 11,247 crore. Similarly, Zomato made a profit of Rs 351 crore, while Swiggy had a loss of Rs 2,350 crore.
Swiggy will bring IPO worth Rs 3,750 crore
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