Ravi Stocks
- IPO Updates
- November 5, 2024
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Swiggy Limited IPO 2024: Complete Details, Company Performance, and GMP Update
Swiggy Limited IPO: A Comprehensive Guide
In this blog, we’ll explore all the essential details about the Swiggy Limited IPO, including the IPO timeline, price band, company background, financial performance, and GMP (Grey Market Premium). “If you’re considering investing, this article will help you make a fully informed decision.”
Swiggy Ltd IPO 2024 : Complete details IPO Price, Allotment, GMP Updated
Table of Contents
- Introduction to Swiggy Limited
- IPO Details (Issue Size, Price, Dates, and Lot Size)
- Objectives of the IPO
- Financial Performance of Swiggy Limited
- Industry Overview
- Strengths and Risks of Investing in Swiggy Limited IPO
- Grey Market Premium (GMP) and Market Sentiment
- How to Apply for the IPO
- Conclusion
1. Introduction to Swiggy Limited
Swiggy Limited is one of India’s leading online food delivery platforms, revolutionizing the way people order food. Founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, the company is headquartered in Bengaluru, Karnataka. Swiggy operates through its user-friendly mobile app and website, allowing customers to browse a vast selection of restaurants and cuisines, place orders, and receive food at their doorstep.Swiggy also offers “Swiggy One,” a subscription for discounts, and data-driven tools to enhance partner businesses. This comprehensive ecosystem has driven its reach, with a workforce of over 5,400 employees by mid-2024 and continual expansion across India.
2. IPO Details (Issue Size, Price, Dates, and Lot Size)
- IPO Opening Date: On Wednesday November 6, 2024
- IPO Closing Date: On Friday November 8, 2024
- Issue Size: 11327.43 Cr. (Fresh Issue + Offer for Sale)
- Price Band: ₹371.00 – ₹390.00 per share
- Lot Size: 38 Shares
- Listing Exchange: NSE and BSE
- Face Value: ₹1 per share
The IPO will consist of a fresh issue of shares as well as an offer for sale (OFS) from existing promoters and shareholders. Retail investors can apply in multiples of the lot size, with a portion of the issue reserved for individual investors, institutional buyers, and non-institutional investors.
3. Objectives of the IPO
Here are the objectives of Swiggy Ltd’s IPO in short, impactful points:
- Instamart Expansion: Scale up grocery delivery through new dark stores in additional cities.
- Tech and Infrastructure: Invest in technology upgrades, cloud solutions, and automation to improve service efficiency.
- Brand Building: Strengthen brand presence with targeted digital marketing campaigns.
- Strategic Acquisitions: Pursue acquisitions and partnerships to enhance service offerings and expand revenue streams.
- Operational Support: Allocate funds for working capital and general corporate purposes to support Swiggy’s growth momentum.
4. Financial Performance of Swiggy Limited IPO
Below is an overview of Swiggy Limited financial performance over the past three years:
| Financial Year | Revenue (₹ Crores) | Total Assets (₹ Crores) | Profit | Net Worth |
| 2021-22 | 6,119.78 | 14,406 | -3629 | 12,266.91 |
| 2022-23 | 8,714.45 | 11,281 | -4179 | 9,056.61 |
| 2023-24 | 11,634.35 | 10,529 | -2350 | 7,791.46 |
| Amount in Crores. |
5. Industry Overview
Swiggy operates in the Indian food delivery and quick-commerce industry, a rapidly expanding sector driven by urbanization, changing consumer habits, and digital adoption. Here are some insights into the industry:
1. Food Delivery Sector
- The Indian food delivery market has seen robust growth, with platforms like Swiggy and Zomato leading in market share. Rising internet penetration, the popularity of smartphone apps, and consumers’ preference for convenience have fueled this demand.
- The industry is expected to grow as younger consumers embrace online food delivery for its variety and convenience. However, it faces challenges like intense competition, high operational costs, and the need to maintain quality in delivery service.
2. Quick-Commerce Growth
- Swiggy’s Instamart division is part of the booming quick-commerce segment, which delivers groceries and essentials within a short timeframe. The demand for hyperlocal delivery has surged, especially post-pandemic, as customers seek fast, doorstep convenience for groceries and daily essentials.
- Quick-commerce players in India compete with offline retail and e-commerce giants like Amazon Fresh, Flipkart Quick, and Reliance JioMart. Swiggy’s extensive dark store network supports its quick-commerce ambitions, positioning it strongly within this space.
3. Consumer Preferences and Digital Penetration
- Increased digital adoption, especially in tier 2 and 3 cities, is broadening the market for food and grocery delivery services. Consumers prioritize convenience and efficiency, and Swiggy’s investment in tech and digital marketing helps meet these demands.
- With rising disposable incomes, younger demographics are more likely to use these services regularly, further expanding Swiggy’s customer base.
4. Regulatory and Market Dynamics
- The food delivery and quick-commerce sectors face regulatory scrutiny, especially in areas like data privacy, food safety, and labor conditions for delivery partners. Swiggy must balance growth with compliance, ensuring safe and fair practices.
- Additionally, high cash-burn models challenge profitability. Both Swiggy and its competitors are shifting focus toward achieving long-term sustainability while managing customer acquisition and retention costs.
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7. Grey Market Premium (GMP) and Market Sentiment
As of the latest update, the GMP for Swiggy Limited IPO is approximately ₹20 per share, indicating positive market sentiment. Investors are optimistic about the company’s future prospects, given its strong financials and growth potential in the infrastructure sector.
GMP can fluctuate before the listing, so it’s advisable to track it regularly to gauge the demand for the IPO.
8. How to Apply for the IPO
Investors can apply for the Swiggy Limited IPO through:
- Online IPO Application: Via net banking using the ASBA (Application Supported by Blocked Amount) facility.
- UPI Method: Apply through UPI-supported platforms like Zerodha, Groww, Upstox, Angel One or Paytm Money.
- Brokers: Approach stockbrokers offering IPO application services.
- Bank Branches: Submit an offline IPO application form at your bank.
Make sure to complete the application process within the IPO window to ensure your bid is accepted.
9. Conclusion
Swiggy Limited IPO offers investors an opportunity to participate in the growth story of a well-established company in the construction and infrastructure space. While the company has demonstrated strong revenue growth, the IPO proceeds will be crucial in managing debt and fueling future expansion.
However, potential investors should carefully consider the risks associated with the sector, including market volatility and rising material costs. It’s advisable to evaluate your financial goals and risk tolerance before investing.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended to serve as financial, investment, or professional advice. Please conduct your own research or consult a certified financial advisor before making any investment decisions. The author or publisher is not responsible for any losses or damages incurred as a result of reliance on the information provided. Investing in IPOs and the stock market involves risk, and past performance does not guarantee future results.
FAQs
What is the price band for the Swiggy Ltd IPO?
The IPO price band is set between ₹371 and ₹390 per share.
What is the minimum investment required?
The minimum lot size for retail investors is 38 shares, translating to an investment of approximately ₹14,820 at the lower end of the price band
When is the Swiggy IPO opening and closing date?
The Swiggy IPO is scheduled to open on November 6, 2024, and close on November 8, 2024. The shares are expected to be listed on the stock exchanges by November 13, 2024
How can I apply for the Swiggy IPO?
You can apply through major brokerage platforms like Zerodha, Groww, or AngelOne, provided you have a Demat account.
How can I check the GMP for Swiggy Limited IPO?
GMP updates are available on financial websites and IPO tracking portals like Chittorgarh, Investorgain and IPO Central, which update GMP daily.
Who is the registrar for Swiggy’s IPO?
The registrar for Swiggy Ltd’s IPO is Link Intime India Pvt Ltd. Investors can check their allotment status on Link Intime’s official website.
