Swiggy’s Upcoming IPO: Everything You Need to Know

Swiggy, one of India’s largest food and grocery delivery platforms, is preparing for a major milestone—its Initial Public Offering (IPO). Set to hit the market in November 2024, this IPO aims to raise a substantial ?11,327.43 crore. Here’s everything you need to know about the upcoming IPO and its key details.

Key IPO Dates

• IPO Opening Date: November 6, 2024
• IPO Closing Date: November 8, 2024
• Allotment Date: November 11, 2024
• Credit of Shares to Demat Account: November 12, 2024
• Refunds Initiation: November 12, 2024
• Listing Date: November 12, 2024

Swiggy IPO Subscription Details

Swiggy’s IPO will be a book-built issue aimed at raising ?11,327.43 crore. The company will issue 11.54 crore fresh equity shares worth ?4,499 crore. Additionally, it plans to raise ?6,828.43 crore through the Offer For Sale (OFS) route, involving the sale of 17.51 crore shares.

The IPO will open for subscription on November 6, 2024, and close on November 8, 2024. The shares will be allocated in the following categories:

• Qualified Institutional Buyers (QIBs): At least 75% of the net issue
• Retail Investors: Up to 10% of the net issue
• Non-Institutional and High Net-Worth Investors: Up to 15% of the net issue

Lot Size and Price Band

The price band for Swiggy’s IPO is set between ?371 and ?390 per share. The IPO will have a lot size of 38 shares, meaning retail investors will need to invest a minimum of ?14,820 to apply. For small non-institutional investors (sNII), the minimum lot size is 14 lots, while big non-institutional investors (bNII) will have a minimum lot size of 68 lots.

IPO Allotment and Listing

After the subscription period ends on November 8, 2024, Swiggy will finalize the allotment process on November 11, 2024. The company’s shares are expected to be listed on the stock exchanges on November 12, 2024.

How Swiggy Plans to Utilize the IPO Proceeds

Swiggy intends to use the funds raised from the IPO for multiple growth-oriented purposes:

1. Prepayment of Borrowings: A portion of the funds will go toward repaying debts for its subsidiary, Scootsy.
2. Expansion of Dark Stores: Swiggy aims to strengthen its position in the quick commerce segment by expanding its network of dark stores for its Instamart service.
3. Technology and Infrastructure: The company plans to invest in enhancing its cloud infrastructure and technology to support its growing operations.
4. Branding and General Corporate Purposes: A portion of the funds will be allocated to brand development and general corporate needs.

About Swiggy

Founded in 2012, Swiggy has grown to become one of India’s largest players in the food and grocery delivery industry. Over the years, the company has expanded its services to include Instamart, which focuses on quick commerce, alongside other offerings like Swiggy Minis and Swiggy Genie.

For the fiscal year 2024 (FY24), Swiggy reported a net loss of ?2,350.24 crore, with revenue of ?11,634.35 crore. As of Q1 FY25, the company’s net loss stood at ?611 crore, with a revenue of ?3,310.11 crore.

With this IPO, Swiggy is setting its sights on the next stage of its journey, including further expansion in the quick commerce space, along with enhanced technological capabilities to keep up with the growing demand for its services.

Final Thoughts

The Swiggy IPO is one of the most anticipated events in the Indian market in 2024. With its established brand, significant market presence, and plans for further growth, Swiggy’s IPO is likely to generate considerable interest among investors. If you’re planning to invest, be sure to review the details and understand the potential risks involved in this high-growth opportunity.

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