Swiggy cuts IPO valuation once more, to $11.3 billion, BlackRock and CPPIB to speculate: report

Swiggy, backed by SoftBank and Prosus, was involved to keep away from a tepid response to its comparatively giant IPO, coming amid international uncertainty. File.
| Picture Credit score: Reuters

Meals supply large Swiggy has slashed its IPO valuation once more, to $11.3 billion, 25% under the preliminary aim of $15 billion as market volatility and the lacklustre debut of Hyundai India weigh on sentiment, two sources stated on Sunday (October 27, 2024).

BlackRock and Canada Pension Plan Funding Board (CPPIB) will spend money on the $1.4 billion IPO, which would be the nation’s second-biggest inventory providing this 12 months, the sources instructed Reuters.

Swiggy, Blackrock and CPPIB didn’t instantly reply to requests for remark outdoors enterprise hours.

Indian shares have fallen for 4 weeks in a row, the longest such dropping run since August 2023, with the benchmark Nifty 50 index down greater than 8% from report highs hit on Sept. 27, resulting from persistent international promoting.

Hyundai India shares fell 7.2% on their debut final week after retail buyers gave a lukewarm reception amid considerations a few lofty valuation.

Swiggy, backed by SoftBank and Prosus, was involved to keep away from a tepid response to its comparatively giant IPO, coming amid international uncertainty from the Nov. 5 U.S. presidential election, and determined to chop the valuation in session with buyers, stated one supply, with direct data of the corporate’s plans.

Swiggy doesn’t need a “unhealthy IPO”, this particular person stated. Its final funding spherical, led by Invesco, valued it at $10.7 billion in 2022.

It competes with Zomato in India’s on-line restaurant and cafe meals deliveries sector, and each have made main bets on a increase in “quick-commerce,” the place groceries and different merchandise are delivered in 10 minutes.

Regardless of latest jitters, India’s IPO market has been buoyant, with round 270 firms elevating $12.57 billion up to now this 12 months, properly above the $7.4 billion raised in all of 2023.