Swiggy IPO To Hit Dalal Street on November 6

Swiggy, the food delivery giant, is coming up with its IPO on November 6, 2024, and investors are all talking about it. With shares priced between Rs.371 and Rs.390, the company will raise a huge Rs.11,700 crore ($1.35 billion). Anchor investors get their shot on November 5, just a day before the Swiggy IPO opens, and the whole thing wraps up on November 8.

What’s in the IPO?

Swiggy’s IPO includes a fresh issue of Rs.4,500 crore and an Offer for Sale (OFS) of about 17.5 crore shares, where early backers like Accel and Elevation Capital are reportedly set for serious gains, even up to 35x returns on shares they are selling! 

Plan for All That Cash

A part of Swiggy’s IPO’s fresh funds will help its quick-commerce game strengthen, mainly through Scootsy, its subsidiary. Out of the proceeds, Rs.982.4 crore will go into expanding Scootsy’s “dark stores” (those specialized fulfillment centers for faster deliveries), with Rs.559.1 crore dedicated to building new ones and Rs.423.3 crore for leasing. Another Rs.586.2 crore is tagged for technology and cloud infrastructure, while Rs.929.5 crore will boost marketing and branding.

Numbers That Matter

Swiggy’s financial journey shows some good momentum. For FY24, Swiggy’s revenue jumped by 36% to Rs.11,247.4 crore from Rs.8,264.6 crore the previous year. Meanwhile, it managed to shrink its losses to Rs.2,350.2 crore from Rs.4,179.3 crore. Even in Q1FY25, revenue soared 35% to Rs.3,222.2 crore, although losses ticked up slightly to Rs.611 crore.

Conclusion: As India’s second-largest food delivery service, Swiggy’s IPO is one of the year’s most anticipated. While recent debuts like Paytm and LIC faced market bumps, Swiggy hopes to sidestep that trend. With a $11.3 billion valuation at the top end, it’s still below Zomato’s IPO value of $26.7 billion, yet holds growth potential, though it’s essential to weigh the potential risks involved.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.