Swiggy, a leading player in India’s food and grocery delivery market, is set to launch its initial public offering (IPO). This report provides crucial insights into the IPO structure, key dates, financials, and Swiggy’s planned use of proceeds.
Swiggy IPO Details:
IPO Dates:
- Open Date: November 6, 2024
- Close Date: November 8, 2024
- Allotment Date: November 11, 2024
- Listing Date: November 12, 2024
Issue Size: ₹11,327.43 crore
- Fresh Equity Shares: 11.54 crore shares valued at ₹4,499 crore
- Offer-for-Sale (OFS): 17.51 crore shares, raising ₹6,828.43 crore
Price Band: ₹371 – ₹390 per share
Lot Size: 38 shares per lot
Investment Structure:
Minimum Investment: For retail investors, the minimum bid involves 1 lot (38 shares), requiring a minimum investment of ₹14,820.
Allocation Breakdown:
- Qualified Institutional Buyers (QIBs): 75% of net issue
- Retail Investors: 10% of net issue
- Non-Institutional and High Net-Worth Investors (NIIs): 15% of net issue
Non-Institutional Minimum Lots:
- Small NIIs (sNIIs): Minimum 14 lots
- Big NIIs (bNIIs): Minimum 68 lots
Allotment and Refund Details:
- Basis of Allotment Finalization: November 11, 2024
- Shares Credited to Demat Accounts: November 12, 2024
- Refund Initiation: November 12, 2024
Purpose and Utilization of Proceeds:
Swiggy plans to utilize the funds from the IPO to support growth and enhance operational efficiencies:
- Debt Reduction: Partial or full prepayment of borrowings related to its subsidiary, Scootsy.
- Quick Commerce Expansion: Investment in Swiggy’s quick commerce segment, especially by increasing dark stores.
- Technology and Infrastructure: Enhancing cloud infrastructure and tech capabilities.
- Marketing and Brand Awareness: Improving Swiggy’s market presence.
- Corporate Expenses: General corporate purposes.
Company Overview:
- Founded: 2012
- Key Services: Food delivery, Swiggy Instamart (quick commerce), Swiggy Minis, and Swiggy Genie.
In FY24, Swiggy recorded:
- Revenue: ₹11,634.35 crore
- Net Loss: ₹2,350.24 crore
In Q1 FY25, Swiggy reported:
- Revenue: ₹3,310.11 crore
- Net Loss: ₹611 crore
Conclusion:
With this IPO, Swiggy aims to consolidate its market position, drive technological enhancements, and strengthen its quick commerce offerings. Investors may consider Swiggy's recent financials, growth trajectory, and market strategies before subscribing to this IPO.
This concise overview covers essential information about Swiggy’s IPO, aiding investors in making informed decisions.
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