Swiggy, a major player in India’s food delivery and quick-commerce sectors, is set to launch its Initial Public Offering (IPO) on November 6, 2024. The company is expected to raise approximately ₹11,300 crore through the sale of new shares and an Offer for Sale (OFS) by existing shareholders, including early investors like Accel and Tencent【40†source】.
Structure of the IPO
– Price Band: The shares will be offered in the price range of ₹371 to ₹390 per share.
– Fresh Issue and OFS: Swiggy will issue new shares worth ₹4,500 crores, while the OFS will account for ₹6,800 crores, allowing some early investors to sell their holdings【40†source】.
Swiggy, the popular food delivery platform, is all set to go public with its Initial Public Offering (IPO) opening on November 6th, 2024. The price band for the IPO has been set at Rs 371-390 per share.
Key Information:
IPO Dates:
Opening Date: November 6th, 2024
Closing Date: November 8th, 2024
Anchor Investor Bidding: November 5th, 2024
Price Band: Rs 371-390 per share
IPO Size: Rs 11,327.43 crore
Fresh Issue Size: Rs 4,499 crore
Offer for Sale (OFS): Rs 6,828.43 crore
Listing Date: Expected to be around November 13th, 2024
Insights:
Swiggy’s IPO is one of the most anticipated IPOs of the year, with a large issue size and strong investor interest.
The company has a strong market position in the food delivery segment and has been growing rapidly in recent years.
However, the IPO is also facing some challenges, such as intense competition from other players like Zomato and the overall slowdown in the Indian IPO market.
Investors should carefully consider these factors before investing in the Swiggy IPO.
Utilization of Funds
Swiggy plans to use the funds from the fresh issue to expand its Instamart quick-commerce business, which has shown significant growth. Around ₹1,178 crore is earmarked for setting up and enhancing dark stores, which are critical for faster deliveries. Additionally, ₹929 crore will be allocated towards marketing and promotions to further boost its presence in the market【40†source】【38†source】.
Financial Performance
Swiggy’s financial performance in FY24 showed a notable improvement. The company achieved a 36% increase in revenue, reaching ₹11,247 crore, while reducing its losses by 43% to ₹2,350 crore. A significant contributor to this growth is Swiggy’s Instamart segment, which has seen rapid expansion, competing with BlinkIt in the quick-commerce space【40†source】.
Competitive Landscape
Swiggy faces competition from other quick-commerce players, including BlinkIt and Zepto, which currently dominate the market. Nevertheless, Swiggy’s focus on expanding its dark stores and delivery network aims to capture more market share in this rapidly growing segment【40†source】.
This IPO presents an opportunity for both retail and institutional investors, but as always, potential investors should consider the company’s competitive challenges and financial health before making any decisions.
Important Note:
This information is for informational purposes only and should not be considered as financial advice. It is always recommended to consult with a financial advisor before making any investment decisions.