Swiggy Ltd, one of India’s leading food and grocery delivery platforms, is set to launch its initial public offering (IPO) on November 6, 2024. The IPO will conclude on November 8 and aims to raise a substantial ₹11,327 crore, marking a significant milestone for the company as it seeks to enhance its market presence and fund growth initiatives.
The Swiggy IPO has established a price band of ₹371 to ₹390 per share, as detailed in its red herring prospectus. The offering includes a fresh issuance of shares worth ₹4,499 crore, along with an offer for sale (OFS) component involving 175,087,863 shares sold by existing investors. Key stakeholders offloading their stakes through the OFS route include prominent firms such as Accel India IV (Mauritius) Ltd, Inspired Elite Investments Ltd, and Tencent Cloud Europe B.V., among others.
The allocation of shares in the IPO is structured to cater to various types of investors. Qualified Institutional Buyers (QIBs) will receive 75% of the offer, Non-Institutional Investors (NIIs) will get 15%, and Retail Investors will be allocated 10% of the offer. The bidding process for anchor investors is scheduled for November 5, just a day before the general subscription opens.
Swiggy plans to utilize the funds raised from the IPO for several key objectives. These include investment in its subsidiary Scootsy, specifically for the repayment or pre-payment of certain borrowings and the expansion of its dark store network to enhance quick commerce capabilities. The company also aims to upgrade its technology and cloud infrastructure, allocate funds for marketing and business promotion activities, and support potential acquisitions to fuel further growth.
For potential investors, several critical dates are essential to keep in mind. The subscription period runs from November 6 to November 8, with the allotment date set for November 11. Credit to Demat accounts and refunds will occur on November 12, followed by the listing on the BSE and NSE on November 13. Leading the issue are book-running lead managers such as Kotak Mahindra Capital Company Ltd, JP Morgan India Pvt Ltd, and BofA Securities India Ltd, with Link Intime India Pvt Ltd serving as the registrar.
Founded in 2014, Swiggy has rapidly expanded its offerings, initially focusing on food delivery and later branching into hyperlocal commerce with services like Instamart, which delivers household items. The company also provides dining reservations through Dineout, event bookings via SteppinOut, and additional services through Swiggy Minis and Genie for pick-up and drop-off.
As the IPO date approaches, investor sentiment around Swiggy appears cautiously optimistic. The company’s strong growth trajectory, highlighted by its rapid expansion into new services and robust operational strategies, positions it well in the competitive food and grocery delivery market. However, investors are likely to keep a close eye on broader market conditions and the performance of similar IPOs in the sector.
The Swiggy IPO is poised to be one of the most significant offerings in the Indian market this year. With its ambitious plans for growth and diversification, coupled with a solid track record since its inception, Swiggy aims to attract a wide range of investors looking to participate in the booming e-commerce and food delivery sectors. As the subscription period approaches, potential investors should assess their strategies carefully and consider the broader implications of investing in this dynamic company.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.
