CORPORATE

Swiggy learnt to have slashed IPO valuation by 10-16% to $12.5-13.5 billion

Food delivery company Swiggy is internally aiming for valuation of $12.5-13.5 billion for its upcoming IPO, cutting its target by 10-16 per cent due to market volatility, two people with direct knowledge said on Thursday.
Swiggy was earlier targeting a $15 billion valuation for its $1.4-billion November IPO, which will be the country’s second-biggest stock offer this year, behind Hyundai India’s recent debut.
Recent market volatility and a correction in stock markets have prompted Swiggy to consider a lower valuation, as it wants to ensure “a lot of value is left on the table” for investors who bid, said the first source with direct knowledge of the matter.
Benchmark Nifty 50 index is on course to log four straight weeks of losses, having dropped 7.15 per cent from record high levels hit on September 27, due to persistent selling by foreign investors.
Hyundai India shares fell by 7.2 per cent on their market debut on Tuesday after retail investors gave a lukewarm reception amid concerns about lofty valuation and an auto industry slowdown.
The two sources said that Swiggy was expected to list on November 13 on Mumbai bourses and open the IPO for subscriptions in the week before that, though the date could change slightly.

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