Bengaluru-based Swiggy, a prominent player in the food delivery industry, is set to make a significant move towards its initial public offering (IPO).

The company is anticipated to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as early as this week, according to a Bloomberg report citing sources familiar with the matter.

Swiggy, known for its diverse food business operations, is looking to raise more than $1 billion through this IPO.

The filing is contingent upon receiving the necessary approvals from SEBI, which would allow Swiggy to advance with its public offering. This move is expected to position Swiggy among the prominent listing candidates in the market.

The IPO plans for Swiggy are reportedly in the final stages of discussion, with the company possibly altering the issue size before proceeding. Despite the ongoing speculation, Swiggy has maintained a low profile on the specifics of the IPO.

The company, which competes closely with its rival Zomato in the food delivery and quick commerce sectors, also has diversified business interests beyond food delivery.

Founded in 2014, Swiggy has established partnerships with over 150,000 restaurants across India. The company aims for a valuation of approximately $15 billion.

Shareholders approved the IPO in April, paving the way for this major financial step.

Financially, Swiggy has reported revenue of Rs 5,476 crore from operations and a loss of Rs 1,600 crore during the first three quarters of the financial year FY24.

While Swiggy's food delivery operations are profitable, its grocery delivery service, Instamart, continues to incur losses. In comparison, Zomato, Swiggy’s closest competitor, is valued between $27 billion and $28 billion.

The Indian capital markets are bracing for more IPO activity in the coming months. Hyundai Motor Co. is preparing to list shares of its local Indian unit, which is anticipated to be one of the largest listings in India to date.

Additionally, LG Electronics Inc. has selected banks for a potential listing of its Indian business, which could raise up to $1.5 billion, according to recent media reports.