Swiggy IPO: A Major Milestone for the Food Delivery Giant

Swiggy has made its first public offering (IPO), which is a big step towards becoming India’s biggest food delivery service. The company wants to raise about 11,300 crore through subscriptions for its first public offering (IPO), which will take place from 6th to 8th November, 2024.

History of Swiggy

The Indian food delivery service Swiggy is one of the best. The first one was in Bengaluru in 2014. Sriharsha Majety, Nandan Reddy, and Rahul Jaimini led the way in starting it. At first, there were just a few coffee shops. After that, it grew quickly by making sure supplies were made on time with its own van. Swiggy, supported by big investors, grew into grocery delivery with Instamart. It also added services like Genie and Dineout. It operates in more than 500 cities now. It’s changing India’s food tech scene with new ideas, fast delivery, and a solid logistics network.

Key Details of the IPO

Price Range: The shares are being sold for between ₹371 and ₹390 each.

Size of the Issue: The IPO has an offer for sale (OFS) of ₹6,828 crore and a new issue of ₹4,499 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: Reaching more customers and making the company stronger

Debt Repayment: To make the balance sheet stronger, pay off your present bills. To help the business grow and reach its goals, think about what it can buy and do.

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.