Swiggy IPO

Swiggy IPO

  • IPO Date06 Nov, 2024 to 08 Nov, 2024
  • Listing Date13 Nov, 2024
  • Face Value₹1 per share
  • Issue Price₹371 to ₹390 per share
  • Lot Size38 Shares
  • Minimum Investment₹14,820
  • Listing AtBSE, NSE
  • Total Issue Size29,04,46,837 Shares
    (aggregating up to ₹11327.43 Cr)
  • Fresh Issue11,53,58,974 Shares
    (aggregating up to ₹4499.00 Cr)
  • Offer for Sale17,50,87,863 Shares
    (aggregating up to ₹6828.43 Cr)
  • Issue TypeBook Built Issue IPO
  • Share holding pre issue2,12,30,66,748
  • Shareholding post issue2,23,84,25,722
IPO Dates

Closing Date

08 Nov, 2024

Initiation of Refunds

12 Nov, 2024

Listing Date

13 Nov, 2024

06 Nov, 2024

Opening Date

11 Nov, 2024

Basis of Allotment

12 Nov, 2024

Credit of Shares

UPI Mandate Expiry Date:08 Nov, 2024

Swiggy Promoter Holding

The Company does not have an identifiable promoter in terms of the SEBI ICDR Regulations and the Companies Act.

Pre Issue Share HoldingPost Issue Share Holding
63.56%-

Swiggy COMPANY INFORMATION

Swiggy IPO is a book built issue of Rs 11,327.43 crores. The issue is a combination of fresh issue of 11.54 crore shares aggregating to Rs 4,499.00 crores and offer for sale of 17.51 crore shares aggregating to Rs 6,828.43 crores. Swiggy IPO opens for subscription on November 6, 2024 and closes on November 8, 2024. The allotment for the Swiggy IPO is expected to be finalized on Monday, November 11, 2024. Swiggy IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, November 13, 2024. Swiggy IPO price band is set at ₹371 to ₹390 per share. Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Jefferies India Private Limited, Avendus Capital Pvt Ltd, J.P. Morgan India Private Limited, Bofa Securities India Limited and ICICI Securities Limited are the book running lead managers of the Swiggy IPO, while Link Intime India Private Ltd is the registrar for the issue. Refer to Swiggy IPO RHP for detailed information.

Founded in 2014, Swiggy Limited provides its users with an easy-to-use platform that they can access via a single app to search, select, order, and pay for food (Food Delivery), grocery and household goods (Instamart) and have orders delivered to their homes via an on-demand delivery partner network.

The company has five business units:

  • Food Delivery;
  • Out-of-home consumption, which includes restaurant visits and events;
  • Quick Commerce for the delivery of grocery and household items on demand;
  • Supply chain and distribution: business-to-business (“B2B”) deliveries, warehousing, logistics and distribution for wholesalers and retailers; and
  • Platform innovation for new initiatives and offerings such as Swiggy Genie and Swiggy Minis.

The company's platform enables restaurant reservations (Dineout) and event bookings (SteppinOut), product pickups/deliveries (Genie) and other hyperlocal commerce activities (Swiggy Minis and others). The company also offers a membership program called “Swiggy One” with discounts and offers, in-app payment solutions such as a digital wallet “Swiggy Money” (a prepaid payment instrument), “Swiggy UPI” and a Swiggy-HDFC Bank credit card for additional benefits.

Swiggy offers restaurant partners, merchant partners (who sell grocery and household items on the Swiggy platform) and brand partners, including alliance partners, comprehensive business enablement solutions such as analytics-driven tools to improve their online presence and user base, fulfillment services to streamline their supply chain and last-mile delivery.

As of June 30, 2024, Swiggy carried a selection of approximately 19,000 SKUs of grocery and household items. These products include (i) everyday convenience purchases such as eggs, bread, fruit, and vegetables, (ii) impulse purchases of snacks and quick meals(iii) recurring purchases that are typically made on a monthly or weekly basis, such as Household items like shampoo, soap and others, (iv) call-off purchases that are made on an ad hoc basis, such as feminine hygiene, basic pharmaceutical and personal care items and stationery, and (v) occasion and festival-related purchases, which include sweets, festive supplies and team items at sporting events.

As of June 30, 2024, Swiggy's Instamart operated a large network of 557 Active Dark Stores across 32 cities in India and as of September 10, 2024, Instamart operated a network of 605 Active Dark Stores across 43 cities in India.

As of June 30, 2024, the company employed 5,401 people.

Swiggy Limited IPO

IPO Overview and Key Highlights

Swiggy Limited, one of India’s largest online food delivery platforms, is offering its Initial Public Offering (IPO), which includes a fresh issue up to ?44,990 million and an Offer for Sale (OFS) of up to 175,087,863 equity shares by existing shareholders. The IPO proceeds from the fresh issue will be used for growth initiatives, including technology upgrades, market expansion, and corporate purposes. The shares will be listed on both the BSE and NSE?.

 Key IPO Details

  • Type of Issue: Book Built
  • Fresh Issue Size: Up to ?44,990 million
  • Offer for Sale (OFS): 175,087,863 Equity Shares
  • Face Value: ?1 per share
  • Listing Exchange: BSE, NSE
  • Offer Opens: November 6, 2024
  • Offer Closes: November 8, 2024?.

 Company Overview

Swiggy Limited, initially incorporated as Bundl Technologies Private Limited, has become a prominent player in the food delivery and convenience sector across India. Apart from food delivery, Swiggy has diversified into grocery and essential item delivery, as well as on-demand service sectors through Swiggy Instamart and Swiggy Genie.

Financial Overview

Swiggy’s financial performance has been marked by revenue growth driven by rising demand for food delivery services and expanded service offerings. The IPO proceeds will bolster Swiggy's expansion into new markets and enhance its technology infrastructure.

 Key Strengths of Swiggy Limited

  1. Market Leadership: Swiggy is a well-recognized brand in the Indian food delivery industry.
  2. Diverse Service Portfolio: Beyond food delivery, Swiggy offers grocery delivery and on-demand services.
  3. Technology Focus: Swiggy has consistently invested in its platform, enhancing customer experience through data-driven operations and AI-based recommendations?.

 IPO Pros and Cons

 Pros

  • Growing Demand for Convenience: With an expanding middle class and growing adoption of convenience services, Swiggy’s market potential continues to grow.
  • Expansion Opportunities: Proceeds from the IPO will allow Swiggy to pursue growth in adjacent markets, potentially increasing revenue streams.
  • Established Brand: Swiggy’s established brand reputation gives it a competitive edge in customer retention and market penetration?.

Cons

  • High Competition: Swiggy faces strong competition from other food delivery platforms and grocery delivery services.
  • High Operational Costs: Given the logistics nature of the business, Swiggy’s profitability may be impacted by high operational expenses.
  • Regulatory Challenges: Compliance with food safety and delivery regulations can pose risks to business continuity?.

 Risk Factors

Investors should consider several risks:

  • Profitability Concerns: High operational costs may impact Swiggy’s profitability.
  • Competitive Pressures: The food delivery sector is highly competitive, with new entrants and established players.
  • Economic Sensitivity: Swiggy’s services are discretionary, and changes in economic conditions could impact demand?.

 Conclusion

The Swiggy Limited IPO offers investors exposure to India’s rapidly growing food and convenience delivery market. With a strong brand, diverse services, and technology-driven growth, Swiggy is positioned for expansion. However, potential investors should consider the impact of operational costs, market competition, and regulatory challenges before investing.

FAQs About Swiggy Ipo

Swiggy IPO will open on 06 Nov, 2024 and close on 08 Nov, 2024. Investors must apply within this period to participate.

The Swiggy IPO price band is set between ₹371.00 and ₹390.00 per share. The minimum lot size is 38, requiring an investment of at least ₹14820.00.

The Swiggy IPO shares are expected to be listed on 13 Nov, 2024, subject to regulatory approvals and final allotment.

You can track your Swiggy IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID

The Swiggy IPO will be listed on major stock exchanges such as NSE and BSE, where you can trade shares once they are listed.