Online food delivery company Swiggy has received shareholders' approval to increase the size of its IPO. In the extraordinary general meeting (EGM) held on October 3, shareholders have approved increasing the size of the initial public offering (IPO) from Rs 3,750 crore to Rs 5,000 crore. According to the news of Financial Express, the company has made a provision for a larger IPO. This can allow an additional Rs 1,250 crore if further funding is needed. The offer for sale (OFS) component remains unchanged at Rs 6,664 crore.

Anticipated Big Public Market Debut

Earlier last month, there were indications that Swiggy was preparing to increase its IPO size. If the IPO size of the Bengaluru-based company is increased further, then its size could potentially reach Rs 10,414 crore ($1.25 billion) or Rs 11,664 crore ($1.4 billion).

This decision has been taken by the company when Swiggy is facing competition from other profitable new generation companies. Such companies include Zomato, Zomato-owned Blinkit, Flipkart Minutes and Tata BigBasket etc.

IPO will come at the end of the year!

According to the news, Swiggy is preparing for its IPO later this year and has been preparing to enter the public market for several months. In FY24, Swiggy's revenue grew 36%, from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24. During the same period, Swiggy's loss decreased by 44% from Rs 4,179 crore to Rs 2,350 crore, according to a report by Financial Express. In contrast, Gurugram-based Zomato posted a revenue of Rs 12,114 crore and a profit of Rs 351 crore in FY24.