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The Swiggy IPO is a book built issue of ₹ 11,327.43 crores. The issue consists of: a fresh issue of 11.54 crore shares of ₹ 4,499.00 crores and an offer for sale of 17.51 crore shares of ₹ 6,828.43 crores.

The Swiggy IPO is bringing subscriptions on the 6th day of November, 2024 and closing on the 8th day of November, 2024. The allotment for the share is expected to be made on November 11th, 2024 which falls on a Monday. The Swiggy IPO is set to be listed on the BSE, NSE with a tentative date of listing set to 13th November, 2024 which falls on a Wednesday.

The Swiggy IPO price band has been decided as ₹371 to ₹390 per share. The minimum lot application is set at 38 Shares. ₹14,820 is the minimum amount of investment retail investors are required to put in. For sNII the minimum preferred amount per lot size is 14 lots (532 shares), which is equal to ₹207,480, and for bNII, it is 68 lots (2,584 shares) which is equivalent to ₹1,007,760.

The issue also contains a reservation of up to 750,000 shares for the employees which is offered at a 25 rupee discount to the issue price.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Pvt. Ltd., Jefferies India Pvt. Ltd., Avendus Capital Pvt. Ltd., J.P. Morgan India Pvt. Ltd., Bofa Securities India Pvt. Ltd. and ICICI Securities Limited are the book running lead managers to the Swiggy IPO while Link Intime India Private Ltd. is the registrar to the issue.

Swiggy IPO Details

Swiggy IPO Timeline

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

Swiggy IPO Lot Size

The minimum number of shares that an investor can bid for is 38 and can be in multiples thereof. The said table gives an outline of the minimum and maximum investment made by the retail investors and HNI in shares and amount, respectively.

Overview of Swiggy Limited

One of the companies within Swiggy Limited is an all-in-one mobile app launched to the public in 2014 that facilitates searching, selecting, ordering, and payment for food, (Food Delivery), groceries and general merchandise (Instamart) as well as delivery services to homes via a network of on-demand delivery partners. Swiggy Limited operates through five business verticals: Food Delivery; Out-of-home consumption, which includes restaurant visits or events; Quick Commerce which focusses on the demand based delivery of grocery and household items; Supply chain and distribution: business to business deliveries, warehousing, logistics and distribution to wholesalers and retailers; and Platform innovation – Development of new initiatives and offerings like Swiggy Genie and Swiggy Minis. Apart from this, the company also has a Dine out module, which allows customers to make restaurant reservations, as well as a Step pinout module, which enables clients to book events. Other hyperlocal commerce services, such as product pickup/drop-off (Genie), and Wiggly Minis, etc. The, ‘swiggy one’ membership program is also provided by the company which offers discounts and offers to members. Additionally, the company provides in-app payment mechanisms and products such as ‘Swiggy Money’ (a prepaid payment instrument), ‘Swiggy UPI’ which is a mobile based payment, and also offers a credit card with HDFC bank to the users for added advantages.

Swiggy provides its restaurant partners, merchant partners (who sell grocery and household products on the Swiggy application), as well as brand partners (including alliance partners) with a full range of business enablement solutions including techniques that are analytics based so as to enhance their visibility and user base, and operational support services including last mile delivery and supply chain management.

As of June 30, 2024, Swiggy presented approximately 19,000 SKUs of grocery and household products through its platform. These have been categorized as: (i) the regular day to day normale purchases such as eggs, bread, fruits and vegetables, (ii) last minute purchases of snacks, and easy to eat food, (iii) the usual buys done within a month or within two weeks, i.e. Household products such as hair conditioners, soaps etc, (iv) spur of the moment buys that happen occasionally e.g. sanitary wears, basic drugs and personal care products, office supplies and the like, and (v) seasonal and event specific purchases more so the perishable food items, decorations and sporting equipment for the tournaments.

As of June 30, 2024, Swiggy’s Instamart had a vast presence of 557 Active Dark Stores in 32 cities of India and additional 605 Active Dark Stores in 43 cities of India by September 10, 2024, which were managed by Instamart.

As of June 30, 2024, the organization had a total staff count of 5,401 persons.

Company Financials

Swiggy Limited Financial Information (Restated Consolidated)

The revenue of Swiggy Limited increased by 34 percent and the profit after tax grew by 44 percent between the Financial year ended March 31, 2024 and the previous year ended March 31, 2023.

Conclusion

Swiggy’s Initial Public Offering (IPO) which is fixed between the dates of November 6 and November 8, 2024, seeks to gather funds of ₹11,327.43 crore. The share price is expected to be between ₹371 and ₹390 with a listing on BSE and NSE dates on November 13. Despite the fact that Swiggy appears to be growing exponentially in a number of its verticals, it continues to make losses on a net basis with very heavy losses as of the year 2024. Given the above financial performance and outlook on the competition in the market, a neutral rating is advised for this particular IPO. While that might be the case, individual investors could look into it for the sake of long term growth and development prospects but they ought to also consider the current state of the company and the associated risks.