Prosus to Sell 5% in Swiggy IPO, may Realise over $500 M:

Swiggy’s largest investor Prosus could realise more than $500 million from the food and grocery delivery firm’s upcoming IPO as it plans to offload 5% stake during the listing. The amount is calculated based on Swiggy’s estimated listing valuation at $11-12 billion. It may change depending on the final issue price. Besides Prosus, other investors including Elevation Capital, Accel and Norwest will sell part of their stake in the initial public offering (IPO), according to Swiggy’s updated draft red herring prospectus (DRHP). Prosus holds a 31% stake in Swiggy through its affiliate MIH India Food Holdings. It is expected to recover more than half of its total investment of around $1 billion, made over multiple rounds, by selling less than one-fifth of its stake. The stake sale and issue of fresh shares by Swiggy could bring Prosus’ stake below 25%, preventing the investor from being marked as the company’s promoter.

As per the updated DRHP, Swiggy’s shareholders will sell a total of 185.3 million shares with Prosus leading the offer for sale (OFS) with 118.2 million shares. Venture capital firm Accel is selling 10.6 million shares worth about $46 million, while Elevation Capital—one of Swiggy’s earliest investors—will realise about $32 million by selling 7.4 million shares. Swiggy’s founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy are also partially selling their stakes. As per the prospectus, Majety and Reddy sold shares in the company between July and September this year through secondary transactions.