Swiggy IPO: The Indian online food ordering and delivery platform, Swiggy, will launch its initial public offering for subscription on Wednesday, November 6, and it will conclude on Friday, November 8. The allocation for anchor investors concerning the Swiggy IPO is set to occur on Tuesday, November 5. The price band of the issue will be set tomorrow (Wednesday, October 30).
The basis for the allotment of Swiggy IPO shares is expected to be finalized on Monday, November 11. Refunds will be processed by the company on Tuesday, November 12, and shares will be credited to the demat accounts of allotees on the same day after the refunds. Swiggy shares are anticipated to be listed on the BSE and NSE on Wednesday, November 13.
The share sale will rank as the second-largest stock offering in the country this year, following Hyundai Motor India’s $3.3 billion IPO that took place earlier this month and experienced dampened enthusiasm from retail investors, according to reports.
Swiggy IPO: 10 key things from RHP
Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.
Swiggy IPO details
Swiggy IPO, comprises a fresh issue of ₹4,499 crore, and an offer-for-sale (OFS) of 175,087,863 equity shares by the corporate selling shareholders.
In the OFS, the selling shareholders are Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V. , Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VIIA-Mauritius, and Tencent Cloud Europe B.V.Swiggy IPO Average cost of acquisition of the Selling Shareholders
Swiggy IPO Average cost of acquisition of the Selling Shareholders
Swiggy IPO Objectives
The company intends to allocate the net proceeds for investing in its Material Subsidiary, Scootsy, to manage debt and to expand its Dark Store network for the Quick Commerce segment by establishing Dark Stores; and (b) to cover lease/license payments related to those Dark Stores.
Additionally, it aims to invest in technology and cloud infrastructure. The firm also mentioned that it will use the funds for brand marketing and promotional business expenses. Furthermore, it plans to allocate the funds for supporting inorganic growth through unspecified acquisitions and for general corporate purposes.
Swiggy Business
Swiggy is an innovative technology company focused on consumers, offering a convenient platform that can be accessed through a single app to explore, choose, order, and pay for food (Food Delivery), groceries, and household products (Instamart), with delivery to their doorstep via our network of on-demand delivery partners. Our platform enables you to make restaurant reservations (Dineout) and book events (SteppinOut), as well as utilise product pick-up/drop-off services (Genie) and engage in various hyperlocal commerce activities (including Swiggy Minis, among others).
Swiggy Board
The board includes Anand Kripalu, Sriharsha Majety, Lakshmi Nandan Reddy Obul, Shailesh Vishnubhai Haribhakti, Sahil Barua, Suparna Mitra , Anand Daniel, Ashutosh Sharma , Sumer Juneja, Roger Clark Rabalais.
Swiggy IPO Peer
The company’s sole listed peer is Zomato Ltd (with P/E of 634.50).
Swiggy arm
The company’s subsidiaries are Scootsy Logistics Private Ltd and Supr Infotech Solutions Private Ltd.
Swiggy IPO Financials
Swiggy Limited’s revenue climbed by 34% and profit after tax (PAT) increased by 44% between the fiscal years ended March 31, 2024 and March 31, 2023.
Swiggy IPO – Key Risks
Some of the key risks are as follows;
- Since its inception, the company suffered net losses in every year and has negative operating cash flows. If they are unable to create appropriate revenue growth while managing their costs and cash flows, they may continue to suffer severe losses.
- If the organisation fails to keep its existing user base or to gain new users in a cost-effective manner, its business, financial situation, and operating results may suffer.
Lock-in of equity shares allotted to anchor investors
Half of the equity shares distributed to anchor investors in the anchor investor portion will be locked in for 90 days from the date of allotment, while the other half will be locked in for 30 days from the date of allotment.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of 24onlive. We advise investors to check with certified experts before making any investment decisions.
