By Aditya Kalra

NEW DELHI, Oct 24 (Reuters) - Indian food delivery giant

Swiggy is internally aiming for a company valuation of

$12.5 billion-13.5 billion for its upcoming IPO, cutting its

target by 10-16% due to market volatility, two people with

direct knowledge said on Thursday.

Swiggy was earlier targeting a $15 billion valuation for its

$1.4 billion November IPO which will be the country's second

biggest stock offering this year, behind Hyundai India's

debut this week.

Recent market volatility and a correction in Indian stock

markets have prompted Swiggy to consider a lower valuation, as

it wants to ensure "a lot of value is left on the table" for

investors who bid, said the first source with direct knowledge

of the matter.

India's benchmark Nifty 50 index is on course to log

four straight weeks of losses, having dropped 7.15% from record

high levels hit on Sept. 27, due to persistent foreign selling.

Hyundai India shares fell 7.2% on their market debut on

Tuesday after retail investors gave a lukewarm reception amid

concerns about a lofty valuation and an auto industry slowdown.

The two sources said Swiggy is expected to list on Nov. 13

on Mumbai bourses, and open the IPO for subscriptions in the

week before that, though the date could change slightly.

Swiggy, which is backed by SoftBank and Prosus

, did not respond to requests for comment.

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

with around 270 companies raising $12.57 billion this year

already, eclipsing the $7.4 billion raised in all of 2023.

Swiggy plans to conduct roadshows for its stock offering in

many Indian cities starting Oct. 30, said the second source.

Swiggy competes with Zomato in India's online

restaurant and cafe food deliveries sector, and both have made

major bets on the new so-called quick commerce boom where

groceries and other products are being delivered in 10 minutes.

Swiggy's last funding round, led by Invesco ( IVZ ) in 2022, valued

it at $10.7 billion.