Swiggy, the leading food and grocery delivery platform in India, is gearing up for its much-anticipated initial public offering (IPO) set to launch next week. Here’s everything you need to know before you consider subscribing to this significant public issue.
IPO Details
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Launch Dates: The Swiggy IPO will open for public subscription on Wednesday, November 6, and will close on Friday, November 8.
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Price Band: The company has set its IPO price band between ₹371 and ₹390 per share.
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Funding Goal: Swiggy aims to raise approximately ₹11,327.43 crore through this offering. This amount consists of a fresh issue of 11.54 crore equity shares worth ₹4,499 crore and an offer for sale of 17.51 crore shares valued at ₹6,828.43 crore.
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Lot Size: The minimum lot size for application is 38 shares, meaning retail investors will need to invest a minimum of ₹14,820 at the upper end of the price band.
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Investor Participation: Notable investors have shown interest in the IPO, with bids reportedly exceeding $15 billion, far surpassing the reserved portion of $605 million for select institutional investors.
IPO Composition and Use of Proceeds
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Offer for Sale (OFS): The OFS includes share sales by major investors such as Accel India IV, Apoletto Asia, and Tencent Cloud Europe, among others.
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Share Reservation: The IPO is structured to reserve 75% of shares for Qualified Institutional Bidders (QIB), 15% for Non-Institutional Investors (NII), and 10% for retail investors. Additionally, up to 750,000 shares are reserved for employees, available at a discounted rate of ₹25 below the issue price.
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Usage of Funds: Proceeds from the IPO will be directed towards enhancing technology and cloud infrastructure, increasing brand visibility, and facilitating future acquisitions, among other general corporate purposes.
Important Dates
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Allotment and Listing: The allotment of shares is expected to be finalized on November 11, with the listing scheduled for November 13. Successful applicants will see shares credited to their demat accounts on November 12.
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Grey Market Premium (GMP): As of today, the grey market premium for Swiggy shares is at ₹22, indicating that shares are trading at a premium of 5.64%, estimated at ₹412 per share in the grey market.
Company Overview
Swiggy has established itself as a pioneer in hyperlocal commerce, primarily focusing on food and grocery deliveries. However, the company has faced challenges, reporting a net loss of ₹2,350.24 crore for the fiscal year ending March 2024, despite generating revenue of ₹11,634.35 crore during the same period.
As the IPO approaches, investors are encouraged to conduct thorough research and consult financial advisors to make informed decisions.
Disclaimer: The information provided herein is for educational purposes only and does not constitute investment advice. Please consult with certified financial experts before making investment decisions.
