Swiggy IPO – Check Date, Price Range and Lot Size [Complete Details]

Are you ready to grab a piece of India’s food delivery giant? The highly anticipated Swiggy IPO is creating quite a buzz in the investment world.

The Appetizer: Why Swiggy’s IPO Matters

Picture this: You’re craving your favorite biryani at midnight, and within minutes, a Swiggy delivery partner is at your doorstep. That’s the convenience that has made Swiggy a household name in India.

Founded in 2014, Swiggy has revolutionized how Indians eat. From street food to five-star dining, everything is just a tap away.

Swiggy IPO Introduction

Swiggy, one of India’s largest food delivery companies, is going for an Initial Public Offering (IPO). This has got everyone from potential investors to industry experts curious. In this detailed post, we will cover everything about the Swiggy IPO – date, price band, lot size and more. Read on to know why this IPO is a must invest and what to know before you invest.

It has been a game changer in the online food delivery space, changing the way Indians order food. Founded in 2014, Swiggy has grown exponentially and is a household name for food delivery. The IPO will be a big milestone for the company and will open up new investment opportunities for the public.

Swiggy’s IPO comes at a time when the Indian stock market is seeing a spate of tech and digital service IPOs. This will not only give Swiggy more capital but also help it compete with its main rival Zomato which went public in 2021.

Swiggy IPO Highlights

Here are the key points of the Swiggy IPO:

What is Swiggy?

Before we get into the IPO details, let’s understand what makes Swiggy a big player in the Indian market.

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History

Swiggy was founded in 2014 by Sriharsha Majety, Nandan Reddy and Rahul Jaimini. From a small start, the platform has grown into a full-fledged food and grocery delivery company. Swiggy’s logistics innovation, large restaurant partnerships and customer obsession has made it one of the largest and most trusted food delivery company in India.

Business Model and Revenue

Swiggy operates through its mobile app and website, connecting customers with local restaurants and food outlets. Its revenue comes from:

1. Commission from Restaurants: A major chunk of Swiggy’s revenue comes from commissions charged to restaurants.
2. Delivery Charges: The company charges delivery fees which varies based on distance, time and order value.
3. Subscription Plans: Swiggy offers subscription plans like ‘Swiggy One’ which gives free deliveries and discounts.
4. Cloud Kitchens and Instamart: The company has forayed into cloud kitchens and grocery delivery through Swiggy Instamart, adding to its revenue streams.

Why Swiggy is going public

Swiggy’s decision to go public is driven by:

1. Funding

IPO will help Swiggy to strengthen its operations, expand in Tier 2 and Tier 3 cities and enhance tech infrastructure.

2. Competition

With Zomato already listed, Swiggy wants to level the playing field and get access to public money to compete better.

3. Debt reduction

Part of the IPO proceeds will be used to pay off the company’s debt and optimize the balance sheet.

4. Brand Credibility

Going public will increase Swiggy’s credibility and transparency which will attract more customers and partnerships.

Swiggy IPO – Price Band and Lot Size

Price Band

Analysts expect Swiggy’s price to be between INR 371 to INR 390 per share. This is competitive to other food delivery companies. The exact minimum amount is INR14098 for buying one lot size for retail investors .

Lot Size

Lot size for Swiggy IPO is expected to be 38 shares per lot. So even small retail investors can participate without burning a hole in their pocket.

Issue Size

IPO is expected to be of 11327 crore size with a mix of fresh issue and offer for sale by existing investors like Naspers, Accel Partners and DST Global.

Swiggy Financials

Revenue Growth

Swiggy has grown very well in recent years. Its revenue for FY 2023 was INR 5,705 crores vs INR 4,276 crores in FY 2022.

Losses and Investments

Despite the revenue growth, Swiggy has incurred losses due to heavy investments in logistics, tech and marketing. The company’s net loss for FY 2023 was INR 2,800 crores which reflects its aggressive expansion plans.

Outlook

Experts think Swiggy’s focus on profitability and diversification through Swiggy Instamart and cloud kitchens will benefit the company in future. IPO proceeds will help drive these initiatives.

Swiggy IPO Timeline 

Swiggy IPO opens on November 6, 2024, and closes on November 8, 2024.

How to Apply for Swiggy IPO

Step by Step

Applying for Swiggy IPO is easy:

1. Demat Account: Have a Demat account with a SEBI registered broker.
2. Online Application: Login to your Demat account and go to IPO section.
3. Swiggy IPO: Select Swiggy IPO and enter the number of lots you want to apply.
4. Bid: Submit and pay.
5. Confirmation: Wait for the confirmation from your broker.

Risks and Considerations

1. Competition in Food Delivery Space

Swiggy has Zomato, Dunzo and local players breathing down its neck. This can impact its market share and profitability.

2. Profitability

Swiggy’s revenue is growing but still not profitable. Invest at your own risk.

3. Regulatory

Regulatory changes especially around food safety and e-commerce can impact Swiggy’s business.

4. Economic Slowdown

Economic downturn can reduce consumer spending on food delivery and impact Swiggy’s top line.

Should You Invest in Swiggy IPO?

Swiggy’s IPO is a great opportunity to invest in India’s growing tech and food delivery space. But before you invest, consider the company’s financials, competition and growth prospects.

Expert Take: What Analysts Say

Analysts are divided. Some think Swiggy’s brand and diversified business will drive growth. Others are wary of the company’s profitability challenges.

Swiggy IPO Subscription Status 

The Swiggy IPO is subscribed 3.59 times on November 8, 2024. The public issue subscribed 1.14 times in the retail category, 6.02 times in the QIB category, and 0.41 times in the NII category.

Total Application : 715,124 (0.94 times)

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Conclusion

Swiggy’s IPO is a big deal in India’s financial market, with potential returns and some risks. Price band is expected to be INR 371-390 per share and lot size is 28 shares. Retail and institutional investors will be in the fray. As with any investment, do your homework. Stay tuned for the final dates and details.

Mark your calendars and get ready for one of the most awaited IPOs recently—Swiggy’s IPO might be your next big bet!