Prosus may have promoter tag in Swiggy’s $1 billion IPO

economictimes.indiatimes.com:

The Dutch-listed investment arm of South African conglomerate Naspers has been trying to bring its holding in Swiggy to below 26% from the current 33%, but its talks with potential investors haven’t been successful. Under Indian rules, a shareholder with a stake of 26% or more is termed a promoter, which puts restrictions on the shares it could sell after the IPO.

Elevate Your Tech Prowess with High-Value Skill Courses

Swiggy's $1 billion IPO is likely to have at least $600 million in offer for sale by existing investors, the people said, as the Bengaluru-based company prepares to file its draft IPO papers in the coming months.

Also read | Swiggy loss for first half FY24 narrows to $208 million, food business grows 17%: Prosus

A spokesperson for Swiggy declined to comment while an email sent to Prosus did not elicit any response till press time Monday.

While Swiggy prepares to file its IPO papers, New Delhi-based wearables and audio accessory brand Boat is likely to reconsider its plan to make an IPO in 2024, people in the know of its plans said. In 2022, it had withdrawn its draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India citing market conditions.

Also read | 40 Indian startups slated to go public or be IPO-ready by FY25: Redseer

But it still has plans for a public share sale, one of the people said.


These are several new-age firms that are looking to go public, after a tumultuous 12-18 months on the local bourses for technology-led startups.