By Aditya Kalra
NEW DELHI (Reuters) – Indian food delivery giant Swiggy has again cut its IPO value to $11.3 billion, 25% below its original $15 billion target, as market volatility and Hyundai India’s lackluster debut weigh on sentiment, two sources said on Sunday.
BlackRock and Canada Pension Plan Investment Board (CPPIB) will invest in the $1.4 billion initial public offering, which will be the country’s second-largest equity offering this year, the sources told Reuters.
Swiggy, Blackrock and CPPIB did not immediately respond to requests for comment outside business hours.
Indian shares have fallen for four weeks in a row, the longest losing streak since August 2023, with the benchmark Nifty 50 index down more than 8% from record highs hit on September 27, due to continued overseas selling.
Shares of Hyundai India fell 7.2% last week after retail investors received a lukewarm response over concerns about a high valuation.
Swiggy, backed by SoftBank and Prosus, was concerned to avoid a lukewarm response to its relatively large IPO amid global uncertainty following the Nov. 5 U.S. presidential election and decided to cut its valuation in consultation with investors, it said. a source. direct knowledge of the company’s plans.
Swiggy doesn’t want a “bad IPO,” this person said. The latest funding round, led by Invesco, valued it at $10.7 billion by 2022.
It competes with Zomato in India’s online restaurant and cafe food delivery sector, and both have been betting big on a boom in “fast commerce,” delivering groceries and other products within 10 minutes.
Despite the recent turmoil, India’s IPO market has been booming, with some 270 companies raising $12.57 billion so far this year, well above the $7.4 billion raised in all of 2023.
(Reporting by Aditya Kalra; Editing by William Mallard)
