Swiggy reduces IPO valuation and size of OFS

Swiggy, the food delivery and quick-commerce platform, has adjusted its valuation expectations for its upcoming IPO. The Bengaluru-based company is now targeting a valuation of $11.3-11.5 billion, down from its initial goal of $12-15 billion.

According to its filings, Swiggy has increased the size of the fresh issue by 20% to Rs 4,499 crore from Rs 3,750 crore initially planned.

Importantly, it has reduced the size of the offer for sale (OFS) by 5.5%, adjusting it to 175,087,863 from 185,286,265 equity shares.

As per reports, Swiggy is targeting a price band of Rs 371-390 per share. Considering the upper price of the band, the OFS is valued at Rs 6,828.4 crore, while the total IPO size will amount to Rs 11,327.4 crore, or approximately $1.35 billion.

Apart from market volatility, the reduction in valuation appears to be due to the size of the OFS, which has made incoming investors cautious. The IPO is expected to open in the first week of November, with the price band to be announced later this month.