Swiggy IPO: GMP, price band, review among 10 key things to know as issue opens tomorrow | Stock Market News

Swiggy IPO: The initial public offering (IPO) of food and grocery delivery giant Swiggy is set to hit the Street on November 6. The company plans to raise more than ₹11,000 crore from the public issue which will remain open till November 8.

Swiggy is a new-age, consumer-first technology company providing services for Food Delivery, quick commerce vertical for grocery and other items called Instamart, out of house consumption for restaurant reservations called Dineout and for events bookings called SteppinOut, and product pick-up/ drop off services under the name Genie. The company is also engaged in other hyperlocal commerce activities.

Ahead of the issue opening, let us check 10 key things to know about Swiggy IPO:

Swiggy IPO: 10 things to know

1] Swiggy IPO Date: The bidding for Swiggy IPO will commence on Wednesday, November 6, and conclude on Friday, November 8. The IPO allotment date is likely November 11 and the company will credit the equity shares into the demat accounts of eligible investors on November 12 and initiate refunds to unsuccessful bidders on the same day. Swiggy IPO listing date is expected to be on November 13.

2] Swiggy IPO Price Band: Swiggy IPO price band has been fixed at ₹371 to ₹390 per share.

3] Swiggy IPO Size: Swiggy IPO is a combination of a fresh issue of 11.54 crore equity shares aggregating to ₹4,499 crore and an offer for sale of 17.51 crore shares worth ₹6,828.43 crore. At the upper-end of the price band, the company aims to raise ₹11,327.43 crore from the book-built issue.

4] Swiggy IPO OFS: The investors selling shares in the OFS portion of Swiggy IPO include Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe B.V.

5] Swiggy IPO Lot Size: Swiggy IPO lot size is 38 shares and the minimum amount of investment required by retail investors is ₹14,820.

6] Swiggy IPO Objectives: The company proposes to utilize the net issue proceeds towards funding investment in the Material Subsidiary, Scootsy, investment in technology and cloud infrastructure, brand marketing and business promotion expenses for enhancing the brand awareness and visibility of its platform, across segments; and for funding inorganic growth through unidentified acquisitions and general corporate purposes.

7] Swiggy IPO Registrar, BRLM: Kotak Mahindra Capital Company, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities and ICICI Securities are the book running lead managers of the Swiggy IPO, while Link Intime India Private Ltd is the IPO registrar.

8] Swiggy IPO Reservation: Around 75% of the shares in Swiggy IPO are reserved for Qualified Institutional Bidders (QIB), 15% of the net issue is reserved for Non-Institutional Investors (NII) and 10% for Retail investors. The company has reserved up to 750,000 shares for employees and is offering shares to them at a discount of ₹25 to the issue price.

9] Swiggy IPO GMP Today: Swiggy IPO GMP today, or grey market premium today, has dropped to ₹20 per share, according to stock market observers, This indicates that in the grey market, Swiggy shares are trading higher by ₹20 apiece, or at a premium of 5.13%, at ₹410 per share, as against the issue price of ₹390 per share.

10] Swiggy IPO Review: Brokerages have so far given mixed reactions to Swiggy IPO. While some analysts have raised concerns over the company’s sustained losses, others are optimistic about Swiggy’s future given the strengths and the projected growth of the online food delivery and Quick Commerce markets.

“Swiggy, at the upper price band of ₹390.0, is valued at Price/Sales, EV/Sales and P/BV multiple of 7.8x/7.3x/7.1x respectively of its FY24 financials on post issue capital. While comparing with Zomato, the issue appears to be fairly priced on all these parameters. We recommend investors to subscribe to the issue for a long term investment perspective,” said SBI Securities.

Aditya Birla Money has recommended to avoid the Swiggy IPO due to the “reported negative” cash flows and ongoing losses, alongside a slightly high valuation of 7.7x FY24 price-to-sales.

About Swiggy

Swiggy is the online food and grocery delivery company and among the first hyperlocal commerce platforms. On the financial front, the company has reported losses for the last three fiscals on a consolidated basis.

For the financial year ending March 2024, Swiggy reported a net loss of ₹2,350.24 crore upon a revenue of ₹11,634.35 crore. For three months ending June 2024, the company posted a net loss of 611.01 crore and a revenue of ₹3,310.11 crore.

The company earns revenue from Commissions from restaurant & merchant partners, Advertising revenue, Fees from customers & delivery partner & Subscription revenue from Swiggy One. The food delivery business is the most scaled with presence across 681 cities in India.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.