Swiggy IPO Latest News:The IPO of online food delivery company Swiggy will be open from 6 November to 8 November 2024. The company has fixed the price band for this at Rs 371 to Rs 390 per share. The size of the IPO is Rs 11327 crore. In this respect, it is also included in the list of biggest IPOs. Similarly to the trend of biggest IPOs like Paytm, LIC, Hyundai, there is not much movement in the gray market regarding this Swiggy IPO. The shares will be listed on 13th November.
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Swiggy IPO GMP: 6%
There is not much movement in the gray market regarding Swiggy. The unlisted stock of the company is at a premium of Rs 25 in the gray market. In terms of upper price band Rs 390, this premium is 6 percent. In this context, there are indications of sluggish listing of the stock.
IPO size: Rs 11327 crore
The size of Swiggy’s IPO is Rs 11327 crore. The share of fresh shares in this will be around Rs 4499 crore, that is, 11,53,58,974 equity shares will be issued in it. Whereas the OFS i.e. Offer for Sale portion is worth around Rs 6828 crore, that is, the promoters or investors will sell 17,50,87,863 equity shares in it. Let us tell you that veteran investment firms like Prosus and Softbank have invested in Swiggy, which can sell their stake in this IPO.
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The company had received approval from SEBI for IPO in September. Swiggy, backed by investors like Prosus, SoftBank and Accel and expected to be valued at $9.3 billion by August 2023, had submitted its offer document on April 30 this year using the confidential pre-filing route. This means that the IPO details, business model and financials were kept private before SEBI approval.
how much reserve for whom
In Swiggy’s IPO, 35% share is reserved for retail investors. 50% of this is reserved for QIB. Whereas 15% share has been reserved for NII.
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Where will the money be used?
Of the funds raised from the IPO, Swiggy will invest about Rs 982 crore in its subsidiary Scootsy and expand the dark store network for its quick commerce subsidiary Instamart. The company will invest Rs 586 crore in technology and cloud infrastructure. Apart from this, the company will invest Rs 929 crore in brand marketing and business promotion. The company will spend about Rs 137 crore to reduce debt.
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Direct competition from Zomato
Swiggy is headquartered in Bangalore and operates in more than 580 cities. It has over 200,000 restaurant partners across India; Swiggy was started in the year 2014. There are more than 1,50,000 restaurants across the country on the company’s platform. Apart from food delivery, the company is also in the business of quick commerce. She does the business of quick commerce under the name of Instamart.
It has direct competition with Zomato. In Instamart’s business, it competes with Zomato’s subsidiaries Blinkit and Zepto. Apart from this, the company also has competition from Amazon, Tata Group’s BigBasket and Flipkart. Zomato launched its IPO in July 2021 with an issue size of Rs 9375 crore and it was subscribed more than 35 times.
