Most bids were clustered around 375 rupees (US$4.20 or $5.40) a share, they said, compared with the indicative price of 371 rupees, which represents a 6.8% discount to Swiggy’s last closing price. The allotment of shares will happen later this week.
Representatives for Swiggy and Temasek declined to comment, while other investors didn’t immediately respond to requests for comments.
The fundraising underscores the Indian e-commerce market’s rapid expansion amid surging demand. Grocery delivery firms are focusing on growth over margins to capture market share and an intensifying price war is weighing on their shares. Swiggy’s stock has declined 25% this year, compared with an over 9% gain in the benchmark NSE Nifty 50 Index.
Local players are racing against Amazon.com Inc and Walmart Inc-backed Flipkart to build dense networks of neighbourhood warehouses and ultra-fast delivery fleets capable of shipping orders within minutes.
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In the share sale launched Tuesday, Prosus-backed Swiggy offered about 269.5 million shares, according to terms seen by Bloomberg. Proceeds will be used to expand and operate the company’s network, including dark stores and warehouses, the terms showed. Swiggy also plans to invest in its technology and cloud infrastructure, and pursue growth opportunities through potential acquisitions.
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