Swiggy IPO Price Band:The long wait for the IPO of online food delivery company Swiggy is about to end. According to information received from Bloomberg and other media reports, Swiggy’s IPO will be open between 6 November 2024 and 8 November 2024. The company has fixed the price band for the IPO at Rs 371 to Rs 390 per share. This IPO will open a day earlier for anchor investors on November 5. Let us tell you that veteran investment firms like Prosus and Softbank have invested in Swiggy, which can sell their stake in this IPO.
IPO size: Rs 11700 crore
According to the report, Swiggy’s target is to raise up to $ 1.35 billion (about Rs 11,700 crore) through IPO. In this, the share of fresh shares will be around Rs 4,500 crore, while the share of OFS i.e. Offer for Sale can be around Rs 6,800 crore. 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.
If Swiggy’s IPO is successful, it will become India’s biggest IPO after Hyundai Motor’s recent IPO earlier this month. However, the listing of big size IPOs like Hyundai, Paytm and LIC has been sluggish.
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.
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.
