Online food delivery platform Swiggy has cut its IPO valuation. The new valuation is $11.3 billion (Rs 95 thousand crores), which is about 25% less than the previous valuation. Earlier it was reported that the company would bring an IPO at a valuation of $15 billion (about Rs 1.26 lakh crores). According to a Reuters report, the company has taken this decision in view of the volatility in the market, the poor start of Hyundai India’s IPO and the uncertainty of the presidential election in the US. BlackRock and CPPIB will invest Rs 11,774 crore According to the report, BlackRock and Canada Pension Plan Investment Board (CPPIB) will invest $1.4 billion (Rs 11,774 crore) in this IPO. This will be the country’s second-largest stock offering this year. Indian stocks have been falling for four consecutive weeks, the longest decline since August 2023. The Nifty-50 index is down more than 8% from its record high of September 27 due to continuous foreign sell-off. Swiggy’s IPO may come in November Swiggy had filed confidential papers for IPO in April this year. Once again on September 26, the company filed an updated draft. According to the updated filing, the company will issue fresh shares worth Rs 3,750 crore, in which the existing shareholders will sell shares worth Rs 18.52 crore through Offer for Sale i.e. OFS. According to media reports, the company may bring IPO in November this year after getting approval from the market regulator. Swiggy’s revenue increased by 36% in FY 2024 Meanwhile, Swiggy’s financial condition has also improved. In FY 2024, Swiggy’s revenue grew by 36% to Rs 11,247 crore, which was Rs 8,265 crore in the previous financial year. At the same time, the company also reduced its loss by 44% during this period and it stood at Rs 2,350 crore in FY 2024, from Rs 4,179 crore in the previous year. The company has been able to reduce its loss by controlling its costs. Although Swiggy’s performance is less than Zomato, it has still reduced the gap with its rival in FY24. Zomato recorded a revenue of Rs 12,114 crore in FY 2024, while Swiggy’s revenue was Rs 11,247 crore. Similarly, Zomato made a profit of Rs 351 crore, while Swiggy’s loss was Rs 2,350 crore. Read this news too… SEBI approves Vishal-Megamart and Swiggy for IPO: Total 5 companies allowed to issue, Swiggy may bring IPO in November Market regulator Security and Exchange Board of India (SEBI) has given permission to total 5 companies, including Swiggy and Hyundai Motor India, to bring their Initial Public Offering (IPO). The market regulator today (Monday, 30 September) also gave approval to Acme Solar Holdings, Vishal Mega Mart and Mamta Machinery to go ahead with their IPO schemes. Read full news… Companies raised ?62,000 crores from IPO in 8 months: This year 5 IPOs gave more than 100% return, 15 gave return between 50% to 90% There have been 57 Initial Public Offerings (IPOs) so far this year. During this period, companies raised a total of Rs 62,000 crores funds from the primary market. Last year i.e. in 2023, a total of 57 IPOs came during the entire year and companies raised Rs 49,400 crore from them. At the same time, August 2024 has been the best month in terms of raising funds through IPO. During this period, a total of 10 IPOs opened for subscription and companies raised funds worth Rs 17,000 crore from this. So far in September (September 12), 7 IPOs have opened and companies have raised a total of Rs 9,205 crore from this. Read full news…
