Swiggy’s highly anticipated initial public offering (IPO), which is seeking to raise approximately Rs 11,327 crore in the primary market, opened on Wednesday 6, November.
The food delivery and quick-commerce platform has set an upper price band of Rs 390 per share. The IPO values the company at around Rs 95,000 crore.
Swiggy IPO Structure
The issue includes a fresh share issuance worth Rs 4,499 crore, alongside an offer for sale (OFS) of shares totaling Rs 6,828 crore. Swiggy’s business model primarily revolves around a B2C marketplace that connects users with various restaurant and merchant partners who list their offerings on the platform. It fulfills these orders by managing deliveries, reservations, payments, and lead generation.
Swiggy IPO Pricing and Market Response
Swiggy has set a price band of Rs 371 to Rs 390 per share, with the offer closing on November 8. Swiggy Food Marketplace CEO Rohit Kapoor noted that the pricing range translates to a valuation of around $11.3 billion, though the final value will depend on where the issue closes.
Swiggy IPO Analyst Recommendations
Several analysts are optimistic about Swiggy’s growth prospects. SBI Securities has rated the IPO as “Subscribe,” suggesting that the issue is reasonably priced, especially when compared with Zomato’s valuation metrics. However, analysts did caution that maintaining a cost-effective dark store network remains crucial to Swiggy’s profitability.
Bajaj Broking also issued a “Subscribe” rating, citing Swiggy’s expanding footprint in over 500 cities across India and strong revenue growth—up 42.4% from FY22 to FY23—as key strengths.
Swiggy IPO Grey Market Premium (GMP)
In the grey market, Swiggy’s shares are showing a moderate premium of Rs 12, or about 3% above the issue price. Although last week’s GMP was slightly higher at Rs 25.
Swiggy Financial Performance
Founded in 2014, Swiggy reported a net loss of Rs 611 crore for the quarter ending June 2024. It had a net loss of Rs 564 crore in the same quarter of the previous year.
