Swiggy, the popular food delivery platform, launched its IPO for public subscription on Wednesday, November 6. Investors can participate in this offering until November 8. Swiggy aims to raise ₹4,499 crore through the issuance of 11.54 crore new equity shares and an additional ₹6,828.43 crore through the sale of 17.51 crore existing shares.
Swiggy IPO Details 🔍
- Total Target: At the upper price band, Swiggy aims to raise up to ₹11,327.43 crore.
- Price Band: The price band is set at ₹371 to ₹390 per share.
- Company Overview: Swiggy offers a variety of consumer-focused services, including food delivery, quick commerce (Instamart), restaurant booking (Dineout), event booking (SteppinOut), and pick-up/drop-off services (Genie).
Key Highlights of Swiggy IPO 📊
- IPO Dates: The IPO opened on November 6 and closes on November 8. Share allotment will occur on November 11, with the listing set for November 13.
- Price Band: The per-share price is between ₹371 and ₹390.
- IPO Size: Includes ₹4,499 crore worth of new shares and ₹6,828.43 crore worth of shares for sale.
- Offer for Sale (OFS): Investors such as Accel India, Apoletto Asia, Alpha Wave Ventures, and Tencent Cloud Europe B.V. will sell their shares through the IPO.
- Lot Size: Minimum investment requires purchasing a lot of 38 shares, totaling ₹14,820 at the lower price band.
- Use of Funds: Proceeds will support investments in Scootsy, technology and cloud infrastructure development, brand marketing, and acquisitions.
- Lead Managers: Kotak Mahindra, Citigroup, Jefferies, and others are lead managers; Link Intime is the registrar.
- Reservation: The IPO allocates 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for retail investors. Employees are eligible for a discount, with 7,50,000 shares reserved at a ₹25 discount.
- Grey Market Premium (GMP): The GMP is ₹20 per share, suggesting that Swiggy shares are trading at ₹410 in the grey market.
- IPO Review: The IPO has received mixed feedback. SBI Securities recommends it for long-term investment, while Aditya Birla Money advises caution due to high valuation and cash flow concerns.
About Swiggy 🌐
Swiggy is an online food and grocery delivery platform. In FY 2024, the company recorded revenue of ₹11,634.35 crore but faced a net loss of ₹2,350.24 crore. Swiggy generates income through restaurant commissions, advertising, consumer fees, and the Swiggy One subscription model.
Swiggy IPO Key Financial Metrics Summary 📊
| Metric | Details |
|---|---|
| Total Target | Up to ₹11,327.43 crore |
| Price Band | ₹371 – ₹390 per share |
| IPO Size | ₹4,499 crore (new) + ₹6,828.43 crore (OFS) |
| Lot Size | 38 shares, minimum ₹14,820 investment |
| Reservation | 75% QIB, 15% NII, 10% Retail, Employee discount available |
| GMP | ₹20, indicating a grey market price of ₹410 |
| Listing Date | November 13, 2024 |
| Revenue (FY 2024) | ₹11,634.35 crore |
| Net Loss (FY 2024) | ₹2,350.24 crore |
| Revenue Sources | Restaurant commission, advertising, consumer fees, Swiggy One |
Important Disclaimer 📉
Investing in IPOs and the stock market carries risks. It is advisable to consult with a financial advisor before making any investment decisions.
