Swiggy IPO Frenzy: Norway’s Sovereign Wealth Fund and Global Giants Show Massive Interest

India’s food delivery and quick commerce space has set the stage for one of the year’s biggest IPOs, and global investors are taking notice. Swiggy, the SoftBank-backed food and grocery delivery giant, has received a staggering response from international heavyweights like Norway’s sovereign wealth fund, Norges Bank Investment Management, and U.S.-based Fidelity, with bids soaring over $15 billion as per a report. Here’s a detailed look at Swiggy’s upcoming IPO, what’s driving investor enthusiasm, and the IPO’s key details.

Swiggy IPO Interest from Big Investors

Global institutions have shown immense confidence in Swiggy’s market potential. Sources indicate that Norway’s Norges, Fidelity, and Capital Group collectively bid over $15 billion, 25 times the $605-million portion reserved for large investors. This unprecedented demand underlines the strength of India’s food delivery market and the appeal of quick commerce, where Swiggy has pioneered rapid 10-minute delivery.

A Valuation Adjustment Following Market Correction

While Swiggy initially aimed for a $15 billion valuation, recent market corrections led the company to adjust its IPO valuation to $11.3 billion, down by 25%. This more conservative valuation aligns with current market sentiments, ensuring the IPO is priced attractively for investors seeking high growth with minimized risk.

IPO Details: Size, Price, and Timelines

The Swiggy IPO, a book-built issue, raised approximately Rs 11,327.43 crores ($1.4 billion), comprising a fresh issue of Rs 4,499 crore and an offer for sale amounting to Rs 6,828.43 crore. The IPO will be available for subscription from November 6 to November 8, 2024, with shares expected to list on the BSE and NSE on November 13, 2024. Swiggy has set its price band at Rs 371-390 per share, with a minimum lot size of 38 shares for retail investors.

Swiggy’s Place in India’s Expanding Quick Commerce Market

Swiggy’s IPO interest highlights the confidence of global investors in India’s rapidly shifting consumption habits and booming quick commerce segment. As more investors seek exposure to India’s growing tech ecosystem, Swiggy stands as a prime example of the potential for high returns. With the IPO expected to conclude at a staggering valuation, Swiggy’s journey from a startup to a public company marks a significant milestone in India’s tech-driven growth story.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.