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Food delivery company Swiggy on Thursday received approval from shareholders at the company’s  Extraordinary General Meeting (EGM) for an enabling provision to increase the fresh issue size of its IPO to Rs 5,000 crore from Rs 3,750 crore, a person familiar with the matter told YourStory.

This enabling provision to expand the size of primary issue does not mean it has already increased the size of its IPO.The final call on whether the fresh issue size will be increased or not will be taken once the roadshows happen before the RHP.

The development was first reported by Moneycontrol. 

Sriharsha Majety-led Swiggy had filed its draft IPO papers with SEBI last week, for a fresh issue of Rs 3,750 crore along with an offer for sale (OFS) of 18.52 crore shares from selling stockholders, according to its draft red herring prospectus (DRHP). 

Kotak Mahindra Capital, Citigroup Global, Jeffries, and Avendus Capital will act as bookrunners for the company.

It plans to use the proceeds for investments in its subsidiary, Scootsy, debt repayments, dark store network expansion, and investments in technology and brand-building initiatives.

This comes just days after US-based investor Invesco raised the fair value of its stake in Swiggy by 25%, according to regulatory filings made with SEC.

Invesco, which holds a 2% stake in Swiggy, valued its 28,844 shares at $237 million as of July, effectively valuing the company at $13.3 billion. It had paid about $190.5 million for the stake when it invested in a $700 million funding round in Swiggy in January 2022, valuing the company at $10.7 billion.