NEW DELHIBENGALURU, Reuters SoftBankbacked Swiggy filed papers on Thursday for an initial public offering, which a source said would be worth 1.25 billion, as the food delivery firm looks to tap a booming stock market in one of India39;s biggest listings this year.

Swiggy is selling shares worth 37.5 billion rupees 448.56 million, while existing shareholders including Prosus, Accel India and Tencent Europe will sell about 185.3 million shares, the company said in its draft prospectus.

The Bengalurubased startup is targeting a valuation of 15 billion through the offering, said the source, who had direct knowledge of the matter.

Swiggy39;s last funding round, led by asset manager Invesco in 2022, valued it at 10.7 billion.

Swiggy did not immediately respond to a Reuters request for comment.

The company competes with Zomato in India39;s online food deliveries sector, and is looking to beef up its quick commerce business as the rivals jostle to deliver everything from groceries to highermargin electronics in 10 minutes a business model that is reshaping how Indians shop.

The IPO also comes as India39;s stock markets surged to record highs recently, with about 235 companies raising more than 8.6 billion more than double the amount raised last year, LSEG data showed.

Swiggy has chosen a good time to come to the market, said WealthMills Securities equity strategist Kranthi Bathini, noting that investor sentiment towards IPOs was strong.

It will also attract extra…