Swiggy IPO: A Major Milestone for the Food Delivery Giant
Swiggy has declared its first public offering (IPO), marking a huge step ahead in its journey to become India’s leading food delivery platform. The company’s first public offering (IPO) from November 6th to November 8th, 2024, aims to raise around ₹11,300 crore through subscriptions. .
Key Details of the IPO
Price Band: The shares are offered at a price band of ₹371-₹390 per share .
Issue Size: The IPO comprises a fresh issue of ₹4,499 crore and an offer for sale (OFS) of ₹6,828 crore .
Investors can bid for minimum of 38 shares, and further bids in multiples of this lot size.
The projected listing date for the shares is November 13, 2024. .
Making Use of Proceeds
Swiggy intends to use IPO earnings for numerous important projects:
Technology and Cloud Infrastructure: Improving the technological foundation to enable its expanding operations .”
Business Promotion and Brand Marketing: Increasing its market reach and thereby strengthening its brand presence
Debt Repayment: Dealing with current financial commitments to enhance the balance sheet Investigating chances for strategic acquisitions and other business operations helps inorganic growth and general corporate purposes.
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Financial Results
Despite fierce competition from Swiggy, Zomato’s operating income increased significantly, quadrupling from ₹5,704 crore in FY22 to ₹11,247 crore in FY24. The company continues to lose money each year; in FY24, it lost ₹2,350 crore.
Market Response
The IPO has received a mixed response from investors. On the first day of subscription, the issue was subscribed 5%, with retail investors showing more interest compared to non-institutional investors . Analysts have provided varied opinions, with some recommending a long-term investment perspective given Swiggy’s strong brand recall and diversified offerings
Conclusion
Swiggy IPO is a huge step toward its aims of market visibility and technology improvement. How successfully this IPO proceeds will determine the company’s growth in the competitive meal service business.
