Indian food delivery giant Swiggy has adjusted the target valuation for its upcoming Initial Public Offering (IPO) to $12.5-13.5 billion, marking a 10-16% cut from its earlier target of $15 billion. The decision comes in response to recent market volatility and corrections in India’s stock markets, with the company aiming to offer more value to investors by tempering expectations. Despite the dip, Swiggy’s IPO, scheduled for November 13, 2024, will still be the second-largest offering in India this year, after Hyundai India.
India’s stock markets have faced a downturn, with the benchmark Nifty 50 index experiencing four consecutive weeks of losses. This, driven by foreign selling, has led Swiggy to scale back its valuation plans. However, the IPO market in India remains robust, with 270 companies raising $12.57 billion so far in 2024, already surpassing last year’s totals.
Swiggy, which is backed by SoftBank and Prosus, is a major competitor to Zomato in India’s food delivery and quick commerce sectors. As part of its IPO campaign, Swiggy will begin roadshows across Indian cities on October 30, presenting its stock offering to potential investors.
Key Highlights:
- Swiggy has reduced its IPO valuation to $12.5-13.5 billion.
- The decision follows market volatility and a dip in India’s stock markets.
- The IPO is scheduled for November 13, 2024, making it India’s second-largest offering this year.