Swiggy, a leading consumer-first technology company, has launched its highly anticipated IPO to fuel significant business expansion and technological growth. Offering a seamless platform, Swiggy connects users with a range of services through its app, including Food Delivery and Instamart for grocery and household items. Swiggy’s app-based convenience platform allows users to browse, order, and pay effortlessly while utilizing a strong network of delivery partners to bring products right to users’ doorsteps.

The Swiggy IPO represents a Book Built Issue totaling ₹11,327.42 Crores, with a Fresh Issue of 1,153.58 Lakh shares valued at ₹4,499 Crores and an Offer for Sale of 1,750.87 Lakh shares totaling ₹6,828.42 Crores. The subscription for this IPO opened on November 6, 2024, and runs through November 8, 2024. The IPO’s allotment will be finalized by November 11, 2024, with shares expected to list on both BSE and NSE on November 13, 2024.

The price band for Swiggy’s shares is set between ₹371 and ₹390 per equity share, aiming for a market capitalization of ₹87,298.60 Crores. Investors can buy in lot sizes of 38 shares, with a minimum investment for retail investors set at ₹14,820. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 14 lots, which translates to ₹2,07,480.

Swiggy has appointed Kotak Mahindra Capital, Citigroup Global Markets, Jefferies India, and Avendus Capital as lead book-runners, while Link Intime India Private Limited serves as the registrar for the issue. The IPO has attracted interest from anchor investors, with Swiggy raising ₹5,085.02 Crores from these investors at a share price of ₹390. 13,03,85,211 equity shares have been allocated to anchor investors, who have shown substantial interest at the upper band price, further strengthening the market's confidence in Swiggy’s potential.

Objectives of the Swiggy IPO

Swiggy plans to utilize proceeds from the Fresh Issue for strategic objectives, including:

1. Investment in Subsidiary Scootsy: Swiggy plans to allocate ₹1,648 Million towards Scootsy, covering repayment or pre-payment of borrowings.
2. Quick Commerce Segment Expansion: A further ₹11,787 Million will go towards Dark Store expansions, with ₹7,554 Million earmarked for setting up these stores, and ₹4,233 Million allocated to lease/license payments.
3. Technology & Cloud Infrastructure: Swiggy intends to invest ₹7,034 Million in upgrading tech and cloud services.
4. Brand Marketing & Promotions: ₹11,153 Million will fund marketing efforts to expand Swiggy's brand presence across segments.
5. Inorganic Growth & Acquisitions: Funds will also support Swiggy’s growth through acquisitions and general corporate needs.

Swiggy’s financial performance has been challenging, with revenues for fiscal years 2024, 2023, and 2022 totaling ₹61,197.77 Million, ₹87,144.53 Million, and ₹116,343.49 Million, respectively. The EBITDA reported was -₹32,337.62 Million in FY2024, -₹39,103.37 Million in FY2023, and -₹18,355.67 Million in FY2022. Profit after Tax reflected losses, with FY2024 at -₹22,559.50 Million, FY2023 at -₹41,921.73 Million, and FY2022 at -₹36,312.28 Million. These metrics suggest that Swiggy's growth trajectory is paired with high investment demands, especially in technology and expansion.

Swiggy IPO Grey Market Premium (GMP)

Currently, Swiggy’s Grey Market Premium shows no real trading value for the shares, reflecting the IPO’s reliance on real-time market demand and supply upon listing. The GMP serves primarily for educational insights as actual price discovery will happen upon the official listing on the BSE and NSE.

Investors interested in monitoring the Swiggy IPO live subscription status can check updates via BSE. As of 7:00 PM on November 8, 2024, the Swiggy IPO saw a subscription rate of 3.59 times, indicating solid investor interest by the close of the subscription period.

For a step-by-step guide to checking Swiggy IPO allotment status online:

• Go to the IPO allotment status page on the registrar’s website.
• Choose “Swiggy Limited IPO” from the IPO dropdown.
• Enter your application number, PAN, or DP Client ID.
• Submit your details to view allotment status.

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Given the valuation metrics and current financials, Swiggy's IPO presents a fully priced offering. While there is market optimism, cautious investors might weigh Swiggy’s profitability trajectory against market comparables before deciding on this investment.