Swiggy Limited IPO (Swiggy IPO) Detail Review –
Swiggy Limited IPO (Swiggy IPO) Detail is set to open from 6th Nov 2024 to 8th Nov 2024. In this article we will analyze the financials , strengths and weaknesses of the Swiggy Limited IPO (Swiggy IPO). Keep scrolling below to read more!
Swiggy Limited IPO (Swiggy IPO) Overview –
Established in 2014, Swiggy Limited provides its users with an easy-to-use platform that they can access via a single app to search, select, order, and pay for food (Food Delivery), grocery and household goods (Instamart) and have orders delivered to their homes via an on-demand delivery partner network.
The company has five business units:
- Food Delivery;
- Out-of-home consumption, which includes restaurant visits and events;
- Quick Commerce for the delivery of grocery and household items on demand;
- Supply chain and distribution: business-to-business (“B2B”) deliveries, warehousing, logistics and distribution for wholesalers and retailers; and
- Platform innovation for new initiatives and offerings such as Swiggy Genie and Swiggy Minis.
The company’s platform enables restaurant reservations (Dineout) and event bookings (SteppinOut), product pickups/deliveries (Genie) and other hyperlocal commerce activities (Swiggy Minis and others). The company also offers a membership program called “Swiggy One” with discounts and offers, in-app payment solutions such as a digital wallet “Swiggy Money” (a prepaid payment instrument), “Swiggy UPI” and a Swiggy-HDFC Bank credit card for additional benefits.
Swiggy offers restaurant partners, merchant partners (who sell grocery and household items on the Swiggy platform) and brand partners, including alliance partners, comprehensive business enablement solutions such as analytics-driven tools to improve their online presence and user base, fulfillment services to streamline their supply chain and last-mile delivery.
As of June 30, 2024, Swiggy carried a selection of approximately 19,000 SKUs of grocery and household items. These products include (i) everyday convenience purchases such as eggs, bread, fruit, and vegetables, (ii) impulse purchases of snacks and quick meals, (iii) recurring purchases that are typically made on a monthly or weekly basis, such as Household items like shampoo, soap and others, (iv) call-off purchases that are made on an ad hoc basis, such as feminine hygiene, basic pharmaceutical and personal care items and stationery, and (v) occasion and festival-related purchases, which include sweets, festive supplies and team items at sporting events.
As of June 30, 2024, Swiggy’s Instamart operated a large network of 557 Active Dark Stores across 32 cities in India and as of September 10, 2024, Instamart operated a network of 605 Active Dark Stores across 43 cities in India.
As of June 30, 2024, the company employed 5,401 people.
Swiggy Limited IPO (Swiggy IPO) Synopsis-
Swiggy Limited IPO (Swiggy IPO) is set to be open from 6th Nov 2024 to 8th Nov 2024, offering combination of fresh issue of 11.54 crore shares aggregating to Rs 4,499.00 crores and offer for sale of 17.51 crore shares aggregating to Rs 6,828.43 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Wednesday, November 13, 2024.
The total issue size of this IPO amounts to Rs. 11,327.43 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 6th Nov 2024 |
| Closing Date | 8th Nov 2024 |
| Lot Size | 38 Shares |
| Face Value | Rs 1 |
| IPO Size | Rs. 11,327.43 Cr |
| Fresh Issue | Rs. 4,499 Cr |
| IPO Price Range | Rs. 371 – 390 |
| Min. Investment | Rs. 14,820 |
| Offer for Sale (OFS) | Rs. 6,828.43 Cr |
| Employee Discount | Rs 25 per share |
| Basis of Allotment | 11th Nov 2024 |
| Refunds | 12th Nov 2024 |
| Listing Date | 13th Nov 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Swiggy Limited IPO (Swiggy IPO) Market Lot
Swiggy Limited IPO (Swiggy IPO) minimum market lot is 38 shares with ₹14,820 application amount. The retail investors can apply up to 13 lots with 494 shares or ₹192,660 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 38 | ₹14,820 |
| Retail Maximum | 13 | 494 | ₹192,660 |
| S-HNI Minimum | 14 | 532 | ₹207,480 |
| S-HNI Maximum | 67 | 2,546 | ₹992,940 |
| B-HNI Minimum | 68 | 2,584 | ₹1,007,760 |
Swiggy Limited IPO (Swiggy IPO) Book Running Lead Managers –
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
- Citigroup Global Markets India Private Limited
- BofA Securities India Limited
- Jefferies India Private Limited
- ICICI Securities Limited
- Avendus Capital Private Limited
Swiggy Limited IPO (Swiggy IPO) Registrar to the offer –
The registrar for the Swiggy Limited IPO (Swiggy IPO) is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- Investment in the Material Subsidiary, Scootsy, for repayment or pre-payment, in full or in part, of certain or all of its borrowings;
- Investment in the Material Subsidiary, Scootsy, for (a) expansion of Dark Store network for Quick Commerce segment through setting up of Dark Stores; and (b) making lease/license payments for Dark Stores;
- Investment in technology and cloud infrastructure;
- Brand marketing and business promotion expenses for enhancing the brand awareness and visibility of its platform, across segments; and
- Funding inorganic growth through unidentified acquisitions and general corporate purposes.
Key Performance Indicator –
The market capitalization of Swiggy Limited is Rs 87298.6 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | NA |
| ROCE: | NA |
| EBITDA Margin: | NA |
| PAT Margin: | NA |
| Debt to equity ratio: | NA |
| Earning Per Share (EPS): | -₹10.7 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | -30.16% |
| Net Asset Value (NAV): | ₹35.48 |
Financial Status –
Swiggy Limited’s revenue increased by 34% and profit after tax (PAT) rose by 44% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The company’s total assets are Rs. 10,529.42 crore.
The company’s total revenue is Rs. 11,634.35 crore.
The company’s PAT is Rs. -2,350.24 crore.
The company’s net worth is Rs. 7,791.46 crore
| Particulars(in Rs. Crores) | 30 June 2024 | 31 MAR 24 | 31 MAR 23 | 31 MAR 22 |
|---|---|---|---|---|
| Revenue From Operations | 3,310.11 | 11,634.35 | 8,714.45 | 6,119.78 |
| PAT | -611.01 | -2,350.24 | -4,179.31 | -3,628.9 |
| Net Worth | 7,444.99 | 7,791.46 | 9,056.61 | 12,266.91 |
| Total Assets | 10,341.24 | 10,529.42 | 11,280.65 | 14,405.74 |
| Total Borrowings | 256.61 | 211.19 |
Evaluation of P/E Ratio :
The P/E Ratio of Swiggy Limited is N/A.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 742.40x.
Peers of Swiggy Limited IPO (Swiggy IPO) –
| Company Name | Revenue from Operations (in Rs Crore) | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|---|---|
| Swiggy Limited | 11,247.39 | -10.7 | -10.7 | 35.48 | -35.23 | -30.16 | 11.14 | Consolidated |
| Zomato Limited | 12,114 | 0.41 | 0.4 | 23.14 | 634.5 | 1.72 | 7.91 | Consolidated |
From the above table, you can see that Swiggy mainly competes with only Zomato. While both companies operate almost on a small scale, Zomato has an edge over Swiggy with an operating revenue of Rs. 12,114 crores. Furthermore, Zomato is a profitable business with an EPS of 0.41 while Swiggy is operating at a loss with EPS standing at a negative 10.7 as of FY24.
Zomato also has a positive return on net worth of 1.72%, meaning it is providing returns to its shareholders, while Swiggy has a negative return on net worth of negative 30.16%, indicating it is currently struggling to turn a profit. Overall, Zomato, with its positive financial metrics, is in a stronger financial position compared to Swiggy.
Dividend Policy
No dividends paid by the company to date.
Swiggy Limited IPO (Swiggy IPO) 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.
Swiggy Limited IPO (Swiggy IPO) Weakness –
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 Limited IPO (Swiggy IPO) Status –
Swiggy Limited IPO (Swiggy IPO) allotment status will be available on Link Intime India Private Limited.
Click on Link Intime India Private Limited. to get allotment status.
Swiggy Limited IPO (Swiggy IPO) GMP Today –
IPO’s last GMP is ₹22, last updated 3rd Nov 2024. With the price band of 390.00, IPO’s estimated listing price is ₹412(cap price + today’s GMP). The expected percentage gain/loss per share is 5.64%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Disclaimer:
- IPO Grey Market Premium (Swiggy Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
