Swiggy’s early backers set to reap a windfall in IPO

livemint.com:

Subscribe to enjoy similar stories. Bengaluru: Swiggy Ltd’s early backers, including Accel, Apoletto, Elevation Capital and Norwest Venture Partners, are set to reap multifold gains on their investments as the food delivery and quick-commerce platform goes public in early November, according to a Mint analysis. The price band for Swiggy has been fixed in the range of ₹371-390 per equity share with a face value of ₹1, according to a Bloomberg report.

The company has sought a valuation of $11.3 billion (nearly ₹95,000 crore) at the upper end of the band, making it one of the largest maiden offers of the year. This is a slight markup from the $10.7 billion valuation when it raised $700 million in its last private round led by US asset manager Invesco in January 2022. The ₹11,300-crore offer, expected to open on 6 November, includes about ₹4,499 crore in fresh capital issue alongside a secondary sale of 175.1 million equity shares through an offer for sale (OFS) by some of the investors offloading part of their stake.

Those who invested early are expected to reap windfall gains. For instance, Accel, which has an average acquisition price of ₹11.17 per share, will make close to 35x returns on its initial investment. Apoletto Asia (acquisition price of ₹13.98), Elevation Capital ( ₹11.44) and Norwest Venture Partners ( ₹14.82) will earn returns in the range of 26-34x returns, according to Mint’s calculations.