Swiggy IPO: Key Details as Food Delivery Giant’s Public Issue Opens Tomorrow

Swiggy IPO: Swiggy, India’s popular food and grocery delivery platform, is set to launch its much-anticipated initial public offering (IPO) on November 6, aiming to raise over ₹11,000 crore. The IPO, which combines a fresh issue and an offer for sale, reflects Swiggy’s ambitious growth plans in the burgeoning quick commerce and food delivery sectors.

Here’s a rundown of the top 10 things to know about the Swiggy IPO:

1. IPO Dates and Key Timelines

• Bidding Dates: The IPO opens for subscription on November 6 and closes on November 8.
• Allotment Date: November 11.
• Listing Date: Expected on November 13.

2. Price Band

• The IPO price band is set at ₹371 to ₹390 per share, with Swiggy aiming to secure around ₹11,327.43 crore at the upper price end.

3. Issue Size and Structure

• The IPO includes a fresh issue of 11.54 crore equity shares, totaling ₹4,499 crore, and an offer for sale (OFS) of 17.51 crore shares valued at ₹6,828.43 crore.

4. Offer for Sale (OFS) Participants

• Notable investors, such as Accel India, Alpha Wave Ventures, DST EuroAsia, Tencent Cloud Europe, and others, will be divesting their shares in the OFS.

5. Lot Size and Minimum Investment

• Retail investors can apply for a minimum of one lot, comprising 38 shares, requiring an investment of approximately ₹14,820.

6. Objectives of the IPO

• Proceeds will fund investments in subsidiary Scootsy, technology and cloud infrastructure, brand marketing, and acquisitions, supporting Swiggy’s growth in India’s hyperlocal commerce landscape.

7. Lead Managers and Registrars

• The IPO is led by Kotak Mahindra Capital, Citigroup Global Markets, Jefferies India, Avendus Capital, and other prominent institutions. Link Intime India is serving as the IPO registrar.

8. Share Reservation

• The IPO has allocated 75% of shares for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for retail investors. Swiggy has also reserved 750,000 shares for employees at a discount of ₹25.

9. Grey Market Premium (GMP)

• Swiggy’s shares are reportedly trading at a premium of ₹20 in the grey market, valuing the stock at ₹410. This indicates moderate interest, translating to a 5.13% premium over the upper price band of ₹390.

10. Brokerage Recommendations

• Analysts have mixed views on the Swiggy IPO. SBI Securities recommends the IPO for long-term investors, citing its alignment with future growth in food delivery and quick commerce sectors. However, Aditya Birla Money has advised caution due to Swiggy’s continued losses and relatively high valuation.

Financials and Business Overview

Swiggy operates in diverse sectors, including food delivery, quick commerce (Instamart), and hyperlocal services (Genie), with a presence across 681 cities in India. Despite significant revenue growth, Swiggy has reported consistent losses in recent years, including a ₹2,350.24 crore loss for FY 2024 on a revenue of ₹11,634.35 crore.

Disclaimer: This article provides an overview of the Swiggy IPO and includes opinions from brokerage firms. Investors should consult certified advisors before making investment decisions.

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