Swiggy’s highly anticipated IPO, positioned to directly compete with Zomato in public markets, is set to open on November 6, closing on November 8. This move follows growing investor interest in India’s food delivery sector. According to Swiggy’s red herring prospectus (RHP), the IPO includes a fresh issue of ₹4,499 crore and an offer for sale (OFS) of 17.5 crore shares by current stakeholders. Major selling shareholders include Accel India, Apoletto Asia, Elevation Capital, Inspired Elite Investments, MIH India Food Holdings, and Tencent Cloud Europe.
IPO Structure and Financials
The IPO’s upper price band is expected to be around ₹390 per share, as reported by Bloomberg, with Swiggy aiming to raise up to $1.35 billion (approximately ₹11,350 crore). Trading is anticipated to begin on November 13. The book-running lead managers include major investment firms like Kotak Mahindra Capital, Citigroup Global Markets India, Jefferies India, Avendus Capital, JPMorgan India, BofA Securities India, and ICICI Securities. Link Intime India will serve as the registrar for the IPO.
| IPO Details | Value |
|---|---|
| Fresh Issue | ₹4,499 crore |
| Offer for Sale | 17.5 crore shares |
| Price Band | ₹371 – ₹390 per share |
| Expected Valuation | Approximately ₹11,700 crore |
| Listing Date | November 13, 2024 |
Swiggy’s Financial Health and Competitive Positioning
Swiggy’s Q1 financials, as disclosed in its RHP, report a consolidated revenue of ₹13,222 crore. Despite a revenue boost, Swiggy’s financials reflect a loss of ₹6,111 crore—a year-on-year increase of 8.3%. The food delivery giant has experienced significant challenges in narrowing its losses, positioning its valuation target at nearly half of Zomato’s.
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| Fiscal Year | Revenue (₹ crore) | Net Profit/(Loss) (₹ crore) |
|---|---|---|
| FY24 (Q1) | 13,222 | (6,111) |
Swiggy’s IPO aims to leverage its strong consumer base and brand, despite the challenges in profitability. Analysts believe that, if Swiggy’s IPO succeeds in attracting long-term investors, it may see an improvement in performance over time, particularly with its Instamart quick-commerce service.
Disclaimer: “This article is for informational purposes only and does not constitute financial advice.”
