Swiggy IPO: All You Need to Know About India’s Biggest Upcoming IPO

the popular food delivery platform, announced its plans for a significant Initial Public Offering (IPO) estimated at ₹10,000 crore (approximately $1.2 billion). This IPO is poised to be the largest offering by an Indian startup since Paytm’s IPO in 2021. With an expected listing around Diwali, this move marks a crucial step in Swiggy’s growth trajectory.

Swiggy IPO Details

The Swiggy IPO is set to include a fresh issue of shares valued at ₹3,750 crore and an offer-for-sale (OFS) of up to 18.5 crore shares from existing shareholders. This dual structure allows Swiggy to raise funds while providing liquidity to its investors. The updated draft red herring prospectus (DRHP) indicates that the company may increase the size of the fresh issue to ₹5,000 crore during an upcoming extraordinary general meeting with shareholders.

Key Highlights:

• Total Issue Size: Approximately ₹10,000 crore
• Fresh Issue: ₹3,750 crore
• Offer for Sale: Up to 18.5 crore shares
• Expected Listing Date: Around Diwali (November 2024)

Swiggy IPO Reservation

The reservation details for the IPO are still pending announcement. However, it is common for companies to reserve a portion of their shares for retail investors, qualified institutional buyers (QIBs), and non-institutional investors (NIIs). The exact allocation will be confirmed closer to the opening date of the IPO.

Swiggy IPO Timeline (Tentative Schedule)

While specific dates are yet to be finalized, the following tentative schedule is anticipated:

• Filing Date: September 26, 2024
• Opening Date: To Be Announced (TBA)
• Closing Date: TBA
• Allotment Date: TBA
• Listing Date: Expected around Diwali

Swiggy IPO Promoter Holding

The promoter holding details post-IPO are not yet disclosed. However, major shareholders such as Prosus Ventures and Accel are expected to participate in the OFS segment of the offering. This will allow them to offload some of their stakes while still retaining significant ownership in the company.

About Swiggy Limited

Founded in 2014 and headquartered in Bangalore, Swiggy has evolved into a leading online food ordering and delivery service in India. The platform operates across more than 580 cities and has expanded its services to include grocery delivery through Instamart and package delivery via Swiggy Genie. As of Q1 FY25, Swiggy reported revenues of ₹3,222 crore but also faced a consolidated loss of ₹611 crore.

Company Financials

Swiggy’s financial health has shown improvement despite ongoing losses:

• Revenue (Q1 FY25): ₹3,222 crore
• Net Loss (FY24): ₹2,350 crore
• Gross Order Value: $4.2 billion

The company is focused on scaling its operations and enhancing profitability by investing in technology and expanding its quick commerce segment.

Swiggy Limited Financial Information (Restated)

Key Performance Indicator

Swiggy has reported a year-on-year growth in its gross order value by 26%, indicating a strong demand for its services. The company aims to leverage this momentum by expanding its dark store network and enhancing its logistics capabilities.

Objects of the Issue (Swiggy IPO Objectives)

The primary objectives of the Swiggy IPO include:

• Expanding its dark store network for quick commerce.
• Strengthening technology infrastructure.
• Reducing existing debt.
• Funding marketing initiatives and general corporate purposes.

Swiggy IPO Review (May apply)

Investors are advised to consider applying for the Swiggy IPO due to its potential for growth in a rapidly expanding market. The food delivery sector in India is projected to nearly double by 2030. However, investors should also be aware of the risks associated with intense competition and changing consumer preferences.

Swiggy IPO Subscription Status (Bidding Detail)

The subscription status will be updated once the bidding process begins. Typically, retail investors can subscribe through various platforms by selecting their desired number of shares and completing payment via UPI.

Swiggy IPO Launch Date

The exact launch date for the Swiggy IPO has not been officially confirmed yet. However, sources suggest that the company is targeting a listing around Diwali, which falls in November 2024. This timing aligns with traditional investment practices during festive seasons in India.

How to Apply for Swiggy IPO

Investors interested in applying for the Swiggy IPO can do so through various platforms. Here’s a step-by-step guide on how to apply:

1. Choose a Platform: Use a brokerage app or website that supports IPO applications.
2. Find Swiggy IPO: Look for Swiggy Limited in the list of upcoming IPOs.
3. Click on ‘Apply’: Select the option to apply for shares.
4. Select Demat Account: Choose your linked Demat account.
5. Enter Quantity: Specify the number of shares you wish to purchase.
6. Submit Application: Review your application and submit it.
7. Track Status: Monitor your application status through the same platform.

Swiggy IPO Subscription Status

Currently, the subscription status of the Swiggy IPO is not available as the offering dates are yet to be announced. Investors will be able to check this status once the application window opens.

Swiggy IPO Allotment Date

The allotment date for the Swiggy IPO is still to be determined (TBA). Typically, allotment occurs a few days after the closing of the subscription period.

Swiggy IPO Lot Size and Price Band

While specific details regarding lot size and price band are not yet disclosed, it is anticipated that this information will be available closer to the launch date. Investors should keep an eye on updates from Swiggy and financial news outlets.

Swiggy IPO FAQs

1. What is the expected price range?
   • The price range is yet to be announced.
2. When will allotment results be available?
   • Allotment results will be available on TBA after closing.
3. How can I check my allotment status?
   • You can check your allotment status using your PAN number or application number on designated platforms.

Swiggy IPO Prospectus Analysis

According to the updated draft red herring prospectus (DRHP), Swiggy plans to issue fresh shares worth ₹3,750 crore while existing shareholders will sell shares worth ₹6,664 crore through an offer-for-sale (OFS). Notable shareholders participating in this OFS include Accel India IV, Norwest Venture Partners, and Tencent Cloud Europe.

Swiggy IPO GMP Today

The Grey Market Premium (GMP) for Swiggy’s shares is currently not available as the IPO details are still pending. GMP is often used by investors to gauge market sentiment before an IPO.

Swiggy IPO Financials Review

In its latest financial report, Swiggy recorded a revenue of ₹3,222 crore for Q1 FY25 but also posted a consolidated loss of ₹611 crore. The company aims to use part of its IPO proceeds for debt reduction and expanding its quick commerce business through dark store networks.

Swiggy IPO Risks and Concerns

Investors should consider several risks associated with investing in Swiggy’s IPO:

• Intense competition from rivals like Zomato and new entrants.
• A significant reliance on revenue from top metropolitan areas.
• Regulatory challenges in food delivery services.
• Changing consumer preferences towards homemade food may impact demand.

Swiggy IPO Growth Prospects Analysis

Despite recent losses, Swiggy’s growth potential remains strong due to increasing demand in India’s online food delivery market. The company is focusing on diversifying its services beyond food delivery into grocery and package delivery sectors.

Swiggy IPO Competitor Comparison

Swiggy’s main competitor is Zomato, which has already established itself as a profitable entity in the market. While Zomato’s recent performance shows profitability, Swiggy continues to invest heavily in growth initiatives.

Swiggy IPO Management Team Background

Swiggy’s management team consists of experienced professionals from various sectors including technology, logistics, and finance. Their expertise drives Swiggy’s strategic direction and operational efficiency.

Swiggy IPO Market Share and Positioning

As of now, Swiggy holds a substantial market share in India’s food delivery sector. The company’s strategic investments aim to enhance its competitive edge against rivals.

Swiggy IPO Fundraising Objective

The primary goal of this fundraising initiative is to support expansion efforts within its quick commerce segment and improve technology infrastructure.

Swiggy IPO Regulatory Approvals Status

The Securities and Exchange Board of India (SEBI) has approved Swiggy’s confidential filing for its IPO earlier this month, paving the way for further steps towards launching the public offering.

Swiggy IPO Underwriters and Lead Managers

The details regarding underwriters and lead managers will be disclosed closer to the launch date as part of standard practices during an IPO process.