Swiggy's IPO Soars with $15 Billion in Bids from Major Investor - Read Now

Swiggy, India's leading food and grocery delivery giant, is all set to unveil its much-awaited IPO next week, raising a massive $1.35 billion. The IPO has already drawn significant interest with the amount of bids exceeding an astronomical $15 billion from the most prominent investors. The growing appeal of India's quick commerce and food delivery sectors is thus evident.

Reuters reports that the anchor book for IPO has been oversubscribed 25 times with institutional investors valued at $605 million. The major investors in this group include Norway's sovereign wealth fund, Norges Bank Investment Management, Fidelity International, among others. Capital Group, BlackRock, and the Canada Pension Plan Investment Board also form a significant part of the bidders.

Just after the recent correction in equity markets, Swiggy has revised its estimated valuation to $11.3 billion from its earlier estimate of $15 billion, down 25 per cent. The adjustment reflects the dynamic nature of the Indian IPO market and investor sentiment that keeps changing with market conditions.

The interest in Swiggy's IPO highlights the rapid growth of the "quick commerce" sector in India, where companies are jostling to deliver their goods within a time frame as short as 10 minutes. According to research firm Datum Intelligence, quick commerce sales in India will touch $6 billion this year from a paltry $100 million in 2020. This is an astronomical growth trajectory that has catapulted Swiggy and its peers to the top of the food delivery revolution.

Swiggy IPO: The company's IPO has been a huge success as institutional investors are confident of the future of food delivery and quick commerce in India. Clearly, companies are spending more as they continue to improve delivery times for groceries, electronics, and many other commodities. That is an increasingly competitive landscape as Indian startups try to start gaining pace on Amazon and other global giants.

This being the case, it marks the IPO of Swiggy as a hallmark event not only for the company but also reflects more trends in the Indian investment landscape. With the oversubscription and strong backing by major institutional investors, the Swiggy IPO has good chances of making significant changes in the Indian IPO market and quick commerce industry.

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