The Buzz Around Swiggy's Upcoming IPO: Insights and Expectations

Swiggy, one of India’s prominent food and grocery delivery  platforms, is generating tremendous interest because of its exceedingly buzz anticipated IPO. The Swiggy IPO associated and presented with a well-established market presence, featuring various revenue streams and a bold growth strategy, presents a financial prospect and symbolizes India's evolving tech-driven market. This article explores the latest trends surrounding Swiggy IPO, including Swiggy IPO GMP, recent Swiggy share price, potential price target, and other key details to help investors make informed decisions. 

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Swiggy IPO Details

Swiggy's IPO is a book-built issue and scheduled to commence and set to begin on November 6, 2024, and the upcoming IPO will close on November 8, 2024. The company aims in pursuits to raise approximately ₹11,327.43 crore through this IPO, which includes a fresh issuance of shares valued at ₹4,499 crore and an offer for sale of current shares. The Swiggy price band for the IPO has been set among ₹371 and ₹390 per share.

Swiggy's valuation has decreased by 10-16% due to market fluctuations, now standing at approximately $11.3 billion. This change represents the current market conditions and  investors sentiment towards the market. However, Swiggy continues to be a strong competitor in the food delivery industry, supported by large investments from major companies like SoftBank and some major investments by key individuals including Amitabh Bachchan and Madhuri dixit.

IPO Details	Description
IPO Start Date	6 November, 2024
IPO End Date	8 November, 2024
IPO Price Band	₹371-₹390 per share
IPO Issue Size	₹11,327 Cr
Lot Size	38 shares/Lot

Utilization of Proceeds

Swiggy intends to use the funds raised from the IPO for various important projects. This includes investing in its material subsidiary, Scootsy, to grow and for the expansion of its Dark Store network for the quick commerce sector, covering costs for leasing or licensing Dark Stores, and supporting technology and cloud infrastructure investments. Moreover, the funds can also go towards brand marketing, promoting the enterprise, and funding inorganic growth through acquisitions. 

Swiggy Share Price and Grey Market Premium

As of the recent updates in reports, Swiggy unlisted share price stands at ₹375 per share. This price reflects the market's confidence and credibility in Swiggy's business model and increased growth potential. 

The current Grey Market Premium (Swiggy GMP) for Swiggy's IPO is approximately ₹98-₹130 per share. This shows strong demand and positive investor outlook leading up to the IPO. The Swiggy GMP is an important gauge for investors as it consistently showcases the possible listing gains and general market sentiment towards the IPO.

According to Swiggy’s Red Herring Prospectus (RHP), the organization has scheduled bidding for anchor investors on Tuesday, November 5, 2024, prior to the IPO commencing for public subscription. This strategic decision enables important institutional investors to make offers, establishing a reference point and setting benchmarks for the IPO price band and potentially increasing investor confidence.

Book-running Lead managers

A group of lead managers, including Kotak Mahindra Capital, Citigroup Global Markets India, Jefferies India, Avendus Capital, J.P. Morgan India, BofA Securities India, and ICICI Securities, are overseeing the IPO process. These companies are managing the entire IPO launch and rollout, including pricing, advertising, and the allotment process, to guarantee a successful public listing for Swiggy. 

Financial Performance and Growth Prospects

Swiggy has shown remarkable growth over the recent few years. The company presented significant growth in FY23-FY24, with sales revenue to ₹11,247 crore, which became an extraordinary increase from the previous year. This growth is driven by a growing number of customers, increased frequency of orders, and strategic alliances and collaboration with restaurants, delivery partners and grocery stores. 

Swiggy has made an active presence into the quick commerce segment with Instamart has proven to be a revolutionized game-changer. Instamart is a service under this brand which delivers groceries and essentials within minutes, has seen rapid adoption and has been embraced, contributing significantly to Swiggy's overall revenue. The company plans to expand this service to more across cities, further boosting its growth prospects.

Swiggy attempts in quick commerce

	Instamart	Blinkit
Revenue	₹1,100 Cr	₹2,301 Cr
Gross Order Value	$1 Billion	$1.6 Billion
Average Order Value	₹460	₹614
No. of Dark Stores	523	526
Monthly Users	4.2 Million	5.1 Million
Presence in Cities	27	26

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Swiggy’s quick commerce business: KPIs

Market Expectations

Analysts and marketplace professionals have been intently looking at Swiggy's overall performance and set an ambitious standard Swiggy share price target for the company post-IPO based on its features. The consensus amongst analysts is that Swiggy share price could see substantial appreciation within the coming months, pushed by using its sturdy market presence and with investor’s sentiment, tech business model, and sturdy future growth prospects.

Investor Sentiment

Investor sentiment towards Swiggy IPO has been overwhelmingly wonderful. The company's achievement of a milestone of 14.03 million average monthly transacting users or customers within the meals delivery platform segment  as of June 30, 2024, has bolstered sentiment amongst potential investors. The backing of outstanding investors such as Accel India IV, Apoletto Asia, Alpha Wave Ventures, and Tencent Cloud Europe further adds to the high quality positive outlook even more. Investor sentiment toward Swiggy's IPO has been phenomenally positive, pushed by the company's strong increase in its quick commerce delivery segment and operational efficiency upgrades.

Conclusion

As Swiggy  gets ready for making its debut in the stock market, the anticipation and excitement for the upcoming IPO are palpable. With a strong business model, strong financial overall performance, and formidable growth plans, Swiggy is poised to make a considerable impact on the Indian stock marketplace. Investors and marketplace watchers alike will be keenly looking at how Swiggy's IPO unfolds and what it approaches for the future of the food delivery  sector in India.