Swiggy, a frontrunner in India’s food delivery and hyperlocal commerce industry, is gearing up for its Initial Public Offering (IPO) with substantial expectations. The Swiggy IPO aims to raise ₹11,327.42 Crores through a combination of fresh issues and an offer for sale, presenting an exciting opportunity for investors.

The subscription period for the Swiggy IPO opens on November 6, 2024, and concludes on November 8, 2024. Investors keen on participating should note that the allotment is expected to be finalized on or about November 11, 2024, with shares listed on the BSE and NSE by November 13, 2024.

IPO Details

The price band for the Swiggy IPO is set at ₹371 to ₹390 per equity share. At the upper end of this price range, the market capitalization of Swiggy will reach approximately ₹87,298.60 Crores. For retail investors, a minimum investment of ₹14,820 is required for one lot, which consists of 38 shares. High-Net-Worth Individuals (HNIs) need to subscribe to a minimum of 14 lots (532 shares), totaling ₹2,07,480.

The IPO will be managed by a consortium of financial institutions, including Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Jefferies India Private Limited, and Avendus Capital Private Limited, with LINK INTIME INDIA PRIVATE LIMITED acting as the registrar for the issue.

Swiggy IPO GMP Today

As of now, the Grey Market Premium (GMP) for the Swiggy IPO is estimated at ₹0, reflecting cautious investor sentiment based on the company's current financial performance. It's important to note that trading based on GMP lacks regulatory oversight, and thus should be approached with caution.

Subscription and Allotment Process

Investors can check their Swiggy IPO allotment status online following the allotment date. To verify, simply navigate to the IPO allotment status page, select Swiggy Limited from the dropdown, and enter your application number, PAN, or DP Client ID. This quick process helps investors determine their allotment status efficiently.

Objectives of the Swiggy IPO

The proceeds from the Swiggy IPO will be utilized for several key purposes:

1. Investment in Scootsy: ₹1,648 million will go towards repaying certain borrowings.
2. Expansion of Dark Stores: ₹11,787 million is earmarked for enhancing the Dark Store network to boost their Quick Commerce segment.
   • ₹7,554 million for setting up new Dark Stores.
   • ₹4,233 million for lease/license payments.
3. Technology Investment: ₹7,034 million will enhance technology and cloud infrastructure.
4. Brand Marketing: ₹11,153 million will be allocated for marketing to elevate brand visibility across various segments.
5. Inorganic Growth: The remaining funds will support unidentified acquisitions and general corporate purposes.

About Swiggy Limited

Established as a leader in the Indian food delivery sector, Swiggy has revolutionized how consumers order food and household items. The platform enables users to browse, select, and order a variety of products with convenience, all through a unified app. Since its inception in 2014, Swiggy has expanded its offerings, which now include grocery deliveries and services like Dineout and Genie.

Swiggy operates on a robust technology framework, employing over 930 skilled professionals dedicated to improving user experience and expanding operational capabilities. As of June 30, 2024, the company continues to innovate in the hyperlocal commerce sector, solidifying its position as a pioneer in the market.

The Indian Food Services Market

The Indian food services market is experiencing rapid growth, with an estimated value of ₹5,600 billion (US$70 billion) as of 2023. The online food delivery segment is particularly dynamic, projected to grow at 17-22% through 2028. The shift towards organized restaurant supply is fueling demand, with Swiggy positioned to capitalize on these trends.

The online food delivery market alone has surged from ₹112 billion (US$1.4 billion) in 2018 to ₹640 billion (US$8 billion) in 2023, showcasing the enormous potential for further growth. The increasing number of urban consumers and rising disposable incomes are pivotal factors driving this trend.

In conclusion, the Swiggy IPO represents a significant investment opportunity for both retail and institutional investors. With a solid business model and a firm footing in the growing food services market, Swiggy is set to become a prominent player on the stock exchanges. As the subscription date approaches, investors should stay informed and prepared to participate in this landmark offering.

The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Swiggy, ACME Solar Holdings, Sagility India, Neelam Lines and Garments, Niva Bupa Health, Rosmerta Digital, NTPC Green, Avanse Financial.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.