Most of the bids were clustered around 375 rupees ($4.2) per share, they said, compared to the indicative price of 371 rupees, which represents a 6.8% discount to Swiggy’s last closing price. The allocation of the shares will take place later this week.
Representatives for Swiggy and Temasek declined to comment, while other investors did not immediately respond to requests for comment.
The fundraising highlights the rapid expansion of the Indian e-commerce market amid rising demand. Grocery delivery companies are focusing more on growth than margins to capture market share, and an intensifying price war is weighing on their shares. Shares of Swiggy are down 25% this year, compared to a gain of over 9% in the benchmark NSE Nifty 50 Index.
Local players race against Amazon.com Inc. and it by Walmart Inc. backed Flipkart to build dense networks of neighborhood warehouses and ultra-fast delivery fleets that can ship orders in minutes.
In the share sale launched on Tuesday, Prosus-backed Swiggy offered about 269.5 million shares, according to terms reported 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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