Swiggy raises nearly $605M from anchor investors; domestic institutional investors lead

Sriharsha Majety-led Swiggy has raised Rs 5,085 crore (nearly $605 million) from anchor investors ahead of its $1.35-billion IPO, according to a filing made with BSE.

The pre-IPO funding was raised from more than 75 key anchor investors wherein the anchor book was distributed between both domestic and international investors at the upper band of its share price of Rs 390, ahead of its Rs 11,700-crore public offering.

The anchor book witnessed participation from over 19 domestic mutual funds, including from SBI, ICICI Prudential, Kotak, Nippon India, and Mirae Asset Mangement, according to information shared with domestic bourses. These funds comprised 40.65% of the total 13.03 crore shares allocated to anchor investors.

Domestic insurance companies including ICICI Prudential Life Insurance, HDFC Life Insurance and SBI Life Insurance also participated in the anchor investment round.

About 56% of the anchor book was awarded to domestic institutional investors.

Global mutual fund investors included Astrone Capital, Fidelity, and Blackrock.

The food delivery and quick commerce giant is set to open for subscription for retail and institutional investors as part of its IPO on November 6; the company has set its price band in the range of Rs 371 - Rs 390 per equity share.

Swiggy’s IPO consists of a fresh issue of 11.54 crore equity shares and an offer for sale (OFS) of 17.51 crore equity shares by existing stakeholders in the company. Its early backers including Accel and Elevation Capital will see over 3,300% gains on their investment during the offering.

Its largest shareholder, Prosus will tender 109 million shares in the offer for sale and is likely to see a gain of 197% on its investment.