Swiggy, India’s well-known food delivery and quick-commerce giant, is all set to open its initial public offering (IPO) for public bidding from November 6-8, 2024.
With a minimum application of 65 shares and a price of Rs 395 per share, the IPO should be affordable for a variety of investors.
IPO Details
The total amount that Swiggy hopes to raise through its IPO is Rs 11,327.42 crore, which includes a new issuance of Rs 4,500 crore and an offer for sale (OFS) of approximately Rs 8,827.42 crore from current shareholders, for a total of 175,087,863 equity shares. Swiggy’s market value is estimated to go up to Rs 95,000 crore following the IPO.
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Swiggy has attracted significant funding from reputable investors, including Accel India IV, Apoletto Asia, and Tencent Cloud Europe. This includes increasing its network of dark stores for grocery delivery, controlling debt, and investing in technology and cloud infrastructure to boost operational efficiency and future growth, while also expanding its Scootsy quick-commerce segment.
Financial Performance Overview
Despite generating Rs 3,310.11 crore in revenue, Swiggy recorded a net loss of Rs 611.1 crore for the quarter ending June 30, 2024. In the fiscal year ending March 31, 2024, the company’s net loss dropped from Rs 4,179.31 crore to Rs 2,350.24 crore indicating a possible upturn in its financial situation.
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Share Allocation And Future Listing
The allocation of IPO shares includes a sizeable 75 per cent reserve for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, and 10 per cent for individual investors. Further, Swiggy has reserved 750,000 equity shares for qualified workers, providing a discount of Rs 25 per share to promote involvement.
The basis for share allocation will be confirmed on November 11, 2024, while refunds will be initiated on November 12. Also on the same day, investors can anticipate that the shares will be credited to their demat accounts. The shares are expected to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on November 13, 2024.
