Your IPO Is Out For Delivery: Swiggy Converts Itself Into A Public Limited Company

Your IPO Is Out For Delivery: Swiggy Converts Itself Into A Public Limited Company

In the next few months, the Bengaluru-based company is expected to file a draft red herring with the regulators.

Juviraj AnchilUpdated: Wednesday, April 10, 2024, 12:04 PM IST
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Image: Wikipedia (Representative)

It is perhaps one of the most talked about IPOs in the market, and Swiggy has upped the buzz around its entry into Dalal street. The food and essential delivery company has converted itself into a public limited company.

Swiggy is Now a Public Ltd

A private limited company (Ltd) does not publicly trade shares and is limited to a maximum of fifty shareholders. And the ownership lies largely within the reach of a limited number of people. Contrast this to a public limited company, here the entities are listed on the equity exchange market, and their shares are traded publicly.

The ownership is also influenced through this process, as the shares of the company is held by investors, including common public, apart from institutional investors, rather than being limited to small number of individuals.

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In the next few months, the company is expected to file a draft red herring with the regulators. A red herring is document submitted to the regulators, by companies, at the time of the of the Initial Public Offering or IPO. The prospectus typically carries detailed information about the company's business, operations, financial performance, and prospects.

The company is said to be planning a colossal USD 1 billion public offering, before the end of 2024.

Tech Cos at D-Street

Swiggy's rival Zomato was a step ahead, as they went public with their IPO on 14 July, 2021. Speaking of Zomato, the company shares have seen a steady growth over the past six months in particular. Currently, the shares stand at 197.05 (10 April, 1033 IST), having gained over 85 per cent over the past two quarters.

Nevertheless, Swiggy is not alone this year, as some of its counterpart from the tech-driven industry are also waiting in the wings to fly to Dalal street. Some of the names, that are expected to issue their IPOs include Ola Electric, FirstCry and Mamaearth.

Over the past two months, various companies from diverse backgrounds and sectors have entered the market, with whopping oversubscription numbers. However, they still got off to a rocky start, once they started trading. It remains to be seen, as to how this new-age companies perform. What remains Swiggy advantage, unlike many other tech-driven companies, is that it turned profitable in 2023.

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