By Aditya Kalra

NEW DELHI, Oct 27 (Reuters) - Indian food delivery giant

Swiggy has slashed its IPO valuation again, to $11.3

billion, 25% below the initial goal of $15 billion as market

volatility and the lacklustre debut of Hyundai India weigh on

sentiment, two sources said on Sunday.

BlackRock ( BLK ) and Canada Pension Plan Investment Board (CPPIB)

will invest in the $1.4 billion IPO, which will be the country's

second-biggest stock offering this year, the sources told

Reuters.

Swiggy, Blackrock ( BLK ) and CPPIB did not immediately respond to

requests for comment outside business hours.

Indian shares have fallen for four weeks in a row, the

longest such losing run since August 2023, with the benchmark

Nifty 50 index down more than 8% from record highs hit

on Sept. 27, due to persistent foreign selling.

Hyundai India shares fell 7.2% on their debut last

week after retail investors gave a lukewarm reception amid

concerns about a lofty valuation.

Swiggy, backed by SoftBank and Prosus, was

concerned to avoid a tepid response to its relatively large IPO,

coming amid global uncertainty from the Nov. 5 U.S. presidential

election, and decided to cut the valuation in consultation with

investors, said one source, with direct knowledge of the

company's plans.

Swiggy does not want a "bad IPO", this person said. Its last

funding round, led by Invesco ( IVZ ), valued it at $10.7 billion in

2022.

It competes with Zomato in India's online

restaurant and cafe food deliveries sector, and both have made

major bets on a boom in "quick-commerce," where groceries and

other products are delivered in 10 minutes.

Despite recent jitters, India's IPO market has been buoyant,

with around 270 companies raising $12.57 billion so far this

year, well above the $7.4 billion raised in all of 2023.