Swiggy, one of India’s largest consumer-focused platforms, is set to launch its Initial Public Offering (IPO). Before applying, review these details to understand what this offering involves. This article gives an overview of Swiggy’s IPO, highlights of the company, its main strengths, and potential risks.
Swiggy IPO Details
Bidding Dates
6 Nov 2024 – 8 Nov 2024
Minimum Investment
—
Price Range
₹371 – ₹390
Maximum Investment
—
Retail Discount
To be announced
Issue Size
₹11,327 Crores
Investor Category and Subcategory
Qualified Institutional Buyers (QIBs) | Retail Individual Investors | Non-institutional Investors (NIIs)Swiggy IPO Dates
Swiggy’s IPO issue size is around ₹12,750 crore. This includes a fresh issue of ₹4,500 crore and an Offer for Sale (OFS) of ₹8,250 crore. The expected price per share is ₹395, targeting a market cap of ₹95,000 crore upon listing. The IPO will tentatively open on November 6, close on November 8, and list on November 13.
About Swiggy
Founded in 2014, Swiggy has grown into one of India’s largest online food delivery platforms. The app allows users to browse, order, and pay for food easily. Beyond food delivery, Swiggy offers services like:
- Instamart: Quick-commerce delivery for groceries and household items.
- Dineout: Restaurant reservation platform.
- SteppinOut: Booking for events and experiences.
- Swiggy Genie: Hyperlocal pick-up and drop-off service.
- Swiggy Minis: Smaller hyperlocal commerce activities.
As of June 30, 2024, Swiggy served 112.73 million users and employed over 5,400 people. It operates with a strong delivery partner network across multiple cities and has 605 dark stores supporting Instamart as of September 2024.
Things to Know Before Applying for Swiggy IPO
Peer Details:
| Company | EPS | PE Ratio | RoNW % | NAV | Market Cap |
|---|---|---|---|---|---|
| Zomato Limited | 0.41 | 742.50 | 1.72 | 23.14 | ₹2,24,399 Cr |
Strengths of the Company
1. Versatile Platform
Swiggy’s platform covers services beyond food delivery. It offers grocery delivery, event bookings, and restaurant reservations, attracting more revenue streams and a wider audience.
2. Growing User Base
Swiggy reached over 112.73 million transacting users by mid-2024. This large base allows Swiggy to use data for targeted marketing.
3. In-App Payment Options
Swiggy offers payment choices like Swiggy Money, Swiggy UPI, and a co-branded credit card with HDFC Bank. These options give customers added discounts and benefits.
4. Revenue Growth
Swiggy’s revenue rose from ₹5,704.90 crore in FY22 to ₹8,264.60 crore in FY23, and ₹11,247.39 crore in FY24, showing steady demand growth.
5. Technology-Driven Operations
Swiggy uses analytics to personalize recommendations and improve delivery routes, reducing last-mile delivery times and enhancing the user experience.
Risks Related to the Company
1. Ongoing Losses
Swiggy has posted annual losses since its inception. In FY24, it reported a loss of ₹2,350.24 crore, improving from ₹4,179.30 crore in FY23. Swiggy’s path to profitability remains unclear, which could affect investor interest.
2. Reliance on Delivery Partners
Swiggy relies on delivery partners but lacks exclusive contracts with them. Partner shortages or retention issues could disrupt its operations.
3. Challenges in Retaining Partners
Swiggy’s success depends on restaurant, merchant, and brand partners. High turnover or rising costs to retain these partners may impact financial performance.
4. Challenges in Quick Commerce
Swiggy’s quick commerce service Instamart depends on factors like dark store location and density. Inefficient operations may lead to higher costs and reduced profitability.
5. Legal and Regulatory Risks
Swiggy, along with its subsidiaries and some directors, faces ongoing legal cases. Negative rulings could impact the company’s financial position and reputation.
6. Debt Obligations
Swiggy’s debt stood at ₹255.58 crore as of July 31, 2024. Inability to service this debt could affect financial stability.
Financial Information of the Company
| Period Ended | Year ending on March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Assets | 10,529.42 | 11,280.65 | 14,405.74 |
| Revenue from Operations (in ₹ million) | 11,634.35 | 8,714.45 | 6,119.78 |
| Profit After Tax (PAT) (in ₹ million) | -2,350.24 | -4,179.31 | -3,628.9 |
| Net Worth (in ₹ million) | 7,791.46 | 9,056.61 | 12,266.91 |
| Reserves and Surplus | -7,880.85 | -6,510.34 | -3,311.1 |
| Total Borrowings (in ₹ million) | 211.19 | – | – |
Source: Swiggy Limited RHP | Company Profile: Swiggy Limited
Conclusion
Swiggy’s IPO offers an opportunity to invest in high-growth sectors like online food delivery and quick commerce. The company’s strengths include a diverse platform, strong revenue growth, and tech-driven operations. However, investors should weigh risks like profitability, reliance on delivery partners, and challenges in a competitive market.
Before applying for any IPO, it is essential to evaluate these risks and follow the latest developments.
FAQs
Swiggy IPO is a main-board IPO. The company is set to raise ₹11,327.43 Cr via Initial Public Offering. The Swiggy IPO issue price is ₹371 to ₹390 per equity share. The IPO is to be listed on NSE and BSE India.
The registrar of Swiggy IPO is Link Intime India Private Limited.
Contact Information
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Phone: +91 810 811 4949
E-mail: swiggy.ipo@linkintime.co.in
Website: www.linkintime.co.in
The IPO will open for subscription by 6 November 2024 and will close by 8 November 2024.
The investors’ portion of Swiggy IPO is 50% for QIB, 15% for NII, and 35% for Retail Investors.
Once the IPO will be live, you will be able to apply directly at Findoc website.
The IPO allotment date is 11 November 2024.
The IPO listing date is 13 November 2024. It will be listed on both stock exchanges NSE and BSE.
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