Swiggy IPO: Review, Valuation, Date & GMP

Swiggy IPO-Complete Overview

Swiggy IPO a Mainboard IPO is a book-built issue of 11,327.43 crore (290,446,837 Shares) by Swiggy Ltd that was founded in 2014. The company offers its users an easy-to-use platform that they can access through a single app to search, select, order, and pay for food (Food Delivery), grocery, and home items (Instamart), and have their orders delivered to their residences through a network of on-demand delivery partners.

The company has five business units:

1. Food Delivery

2. Out-of-home consumption, which includes restaurant visits and events

3. Quick Commerce for groceries and household essentials on tap

4. Supply chain and logistics: B2B deliveries, warehousing, and distribution for wholesalers and retailers 

5. Platform innovation for new initiatives and offerings, including Swiggy Genie and Swiggy Minis.

 

Detailed Video

These aid the company in restaurant reservations or events through the SteppinOut interface and product collection and delivery exercises through Genie and other hyper-local commerce. In addition to this, Swiggy One is a membership platform with discounts/offers available as the membership program; digital wallets for in-app payments available and called "Swiggy Money" prepaid payment instruments, "Swiggy UPI" as well as a Swiggy- HDFC bank credit card for added inducement.

Swiggy has restaurant partners, merchant partners who sell grocery and household items on Swiggy, and brand partners including alliance partners to whom, in addition to the core services-business enablement solutions covering analytics-driven tools to make their online presence better along with an added user base, there would be more services to optimize their supply chain and last-mile delivery.

Swiggy carried on board, till June 30, 2024, a choice of around 19,000 SKUs of grocery and household items. These include (i) everyday purchases of grocery items, including eggs, bread, fruits, and vegetables (ii) impulse purchases, including snacks and fast food, (iii) cyclic purchases typically done either weekly or monthly, for example, Household essentials such as shampoo, soap etc (iv) call-off purchases done as needed, including sanitary items, general pharmaceutical and personal care items, and stationery, and (v) occasion- and festival-related purchases, including sweets, festival merchandise and sports team merchandise for sporting events.

The Zomato's rivalry Swiggy beats or lacks Zomato. Let's check it here Zomato or Swiggy which is Better

This new IPO is to be launched on November 06, 2024, and the initial public offering of this upcoming IPO will end on November 08, 2024.

 

 

Swiggy IPO Details

The Rs.11,327.43 crore IPO of Swiggy comprises a fresh Issue of 11.54 crore Shares (Rs.4,499 Cr) and an offer for sale (OFS) of 17.51 crore Shares (Rs.6,828.43 Cr) and it will be listed at BSE and NSE. 

Before applying for this IPO, know about the company's journey for better understanding. Read an interesting Swiggy Story.

Swiggy IPO Launch Date is Wednesday, 06 November, 2024

Swiggy IPO Listing Date is Wednesday, 13 November, 2024

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company’s revenue climbed by 34% and PAT grew by 44% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

 

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

 

Revenue Bifurcation 

(Values in millions)

 

Revenue Bifurcation 

(Values in millions)

 

Swiggy IPO Plans

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Investment in Scootsy, the Material Subsidiary, for the full or partial redemption or prepayment of some or all of its debts.

• Investment in Scootsy, a Material Subsidiary, for (a) establishing Dark Stores to grow the Dark Store network for the Quick Commerce division and (b) paying Dark Store leases and licenses.

• Expenditure on cloud infrastructure and technology.

• Costs associated with brand marketing and business promotion to raise platform exposure and brand awareness across all markets.

• Financing inorganic expansion through broad business objectives and unnamed acquisitions.

 

Peers of Swiggy Ltd.

Evaluation

Swiggy IPO share price is between Rs.371 and Rs.390 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.-10.70 from the last year, the resulting P/E ratio is NA.

Considering the weighted EPS of Rs.-14.90 for the last three years, the P/E ratio is NA.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 742.40x.

 

IPO's Strengths 

• Innovatively cultured leaders in high-frequency hyperlocal commerce regions.

• Growing user base over time.

• Increases user engagement in the app.

• Available through one app that is a trusted user experience of Swiggy.

• Well-liked by brand partners, restaurant partners, retail partners, and delivery partners

• The platform experiences strong network effects because of the enormous scale of the user and the partner base of our operation.

 

IPO’s Weaknesses 

• Its Quick Commerce business depends on the efficient management of its Dark Stores. If this is not done, it could negatively impact its operations, financial situation, and business.

• If the company cannot maintain its current user base or add new users at a reasonable cost, its business, financial condition, and operating results may be adversely affected.

• The company had net losses every year since its inception and had negative operating cash flows.

• The supply chain and distribution business depends on the efficient management of the warehouses, and if it doesn't do it, it could negatively impact the operations and financial situation.

 

Swiggy IPO GMP 

IPO GMP today is Rs.18 as of 02 November 2024.

Swiggy Limited IPO Timetable (Tentative)

The Swiggy IPO date is from November 06 to November 08, with IPO allotment on November 11, refund initiation on November 12, and listing on November 13, 2024.

 

IPO Details 

The IPO with a face value of Rs.1 per Share offers a total issue size of 290,446,837 Shares and will be listed at BSE and NSE.

IPO Swiggy Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (38 Shares) amounting to Rs.14820 and 13 Lots (494 Shares) amounting to Rs.192,660 respectively, while for HNI investors, the minimum Lot is 14 (532 Shares) amounting to Rs.207,480.

Swiggy IPO Reservation

 

Promoters and Management of Swiggy Ltd. 

The company doesn’t have an identifiable promoter.

Swiggy IPO Lead Managers

• Kotak Mahindra Capital Company Limited

• Citigroup Global Markets India Private Limited

• Jefferies India Private Limited

• Avendus Capital Pvt Ltd

• J.P. Morgan India Private Limited

• Bofa Securities India Limited

• ICICI Securities Limited.

 

Dividend Policy

No dividends paid by the company to date.

 

Conclusion

Swiggy's IPO is a huge step in expanding the company into different business domains in quick commerce, food delivery, and logistics through its very new platform. This highly recognized market with a diversified service range and broad customer reach promises to appeal to many investors despite higher operating cost expenditure and struggling user base addition. While continuously incurred losses have troubled it thus far, Swiggy's company foothold is indeed in India's hyper-local-commerce domain. This IPO is likely to put growth into the business with related financial and operational risks.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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