As India’s on-demand delivery market surges, Swiggy Limited stands out as a major player. Founded in 2014, Swiggy has grown into a comprehensive convenience service, providing food, grocery, and logistics solutions across India. The company now presents a unique investment opportunity through its Initial Public Offering (IPO) scheduled for November 2024, marking a new chapter in its growth.
Below, explore the Swiggy IPO details, the company’s objectives, performance highlights, and how you can easily invest through HDFC Sky’s ‘One-Click IPO’ feature.
If you’re new to stock market investments, consider opening Demat account first, as it’s essential for holding shares electronically
Company Background: Swiggy’s Journey from Food to All-Round Convenience
Swiggy has evolved from a food delivery service into a multi-service platform. Users can now order groceries, book tables, attend events, and use logistics solutions like Swiggy Genie. Through its “Swiggy One” membership, the platform offers discounts, loyalty benefits, and convenient in-app payment options like Swiggy Money and a co-branded HDFC credit card. Swiggy is regarded as a leader in consumer technology, according to Kantar’s 2024 BrandZ report, underscoring its strong brand presence and user base.
IPO Snapshot: Key Dates, Price, and Offer Details
Important Dates for Swiggy’s IPO
- Open Date: November 6, 2024
- Close Date: November 8, 2024
- Listing Date: November 13, 2024
Pricing and Lot Information
- Price Range: ₹371 to ₹390 per share
- Face Value: ₹1 per share
- Lot Size: 38 shares
Issue Details
- Total Issue Size: ₹11,327.43 crore, comprising 290,446,837 shares
- Fresh Issue: ₹4,499 crore, representing 115,358,974 shares
- Offer for Sale (OFS): ₹6,828.43 crore, or 175,087,863 shares
- Employee Discount: ₹25 per share
- Listing Exchange: BSE, NSE
Investors can easily participate in Swiggy’s IPO through a user-friendly trading app that offers seamless access, making it simple for both beginners and experienced investors.
Financial Snapshot: Performance Trends
| Particulars | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Total Assets | ₹10,341.24 Cr | ₹10,529.42 Cr | ₹11,280.65 Cr | ₹14,405.74 Cr |
| Revenue | ₹3,310.11 Cr | ₹11,634.35 Cr | ₹8,714.45 Cr | ₹6,119.78 Cr |
| Net Profit (Loss) | ₹-611.01 Cr | ₹-2,350.24 Cr | ₹-4,179.31 Cr | ₹-3,628.9 Cr |
| Net Worth | ₹7,444.99 Cr | ₹7,791.46 Cr | ₹9,056.61 Cr | ₹12,266.91 Cr |
| Reserves & Surplus | ₹-7,750.85 Cr | ₹-7,880.85 Cr | ₹-6,510.34 Cr | ₹-3,311.1 Cr |
Financial Highlights:
- Revenue Growth: Swiggy’s revenue increased to ₹11,634.35 crore in FY 2024 from ₹6,119.78 crore in FY 2022.
- Profitability Challenges: Though net losses have declined, the company remains unprofitable. Losses were reduced from ₹-4,179.31 crore in FY 2023 to ₹-2,350.24 crore in FY 2024.
- Declining Asset Base: Total assets decreased from ₹14,405.74 crore in FY 2022 to ₹10,341.24 crore by mid-2024, indicating restructuring.
Investment Rationale: Why Consider Swiggy’s IPO?
- Market Leader: Swiggy is a pioneer in India’s hyperlocal delivery sector with millions of active users and a diverse partner network. As investors explore potential gains from Swiggy’s IPO, Futures and Options trading can serve as strategic tools for managing risk and enhancing returns.
- Innovation-Driven: Swiggy’s app continuously introduces new services, strengthening user engagement.
- Brand Reputation: As India’s top-ranked consumer tech brand in Kantar’s 2024 report, Swiggy’s market presence gives it a unique advantage.
- Multi-Service Platform: Swiggy’s broad offerings, including Food Delivery, Instamart, Genie, Dineout, and SteppinOut, attract various user needs in a single app.
IPO Goals: Utilisation of Funds
The net proceeds from the IPO will be directed towards:
- Repaying Borrowings: Funding will help repay debts, notably for Scootsy, to reduce financial liabilities.
- Expanding Dark Store Network: Strengthening the Quick Commerce segment to enhance fulfillment speed and inventory options.
- Technology Enhancement: Investing in tech infrastructure and cloud solutions to support Swiggy’s digital growth.
- Marketing and Brand Building: Focusing on campaigns that promote Swiggy’s expanding services.
- Strategic Acquisitions: Potential acquisitions to support Swiggy’s growth and expansion plans.
Risks to Keep in Mind
- Profitability Constraints: Despite revenue growth, Swiggy has yet to achieve profitability.
- Customer Retention: A highly competitive market demands ongoing efforts to maintain user loyalty.
- Reliance on Dark Stores: Effective management of these stores is crucial to ensuring smooth operations.
- Regulatory Hurdles: As an e-commerce company, regulatory changes could impact Swiggy’s business structure. Investors should consider using an F&O app to navigate market fluctuations and mitigate risks associated with Swiggy’s ongoing challenges
Swiggy IPO Allotment Structure
Here’s how Swiggy’s IPO allotment is expected to be structured:
- Qualified Institutional Buyers (QIB): 75% of the total issue
- Retail Investors: Up to 10% of the total issue
- Non-Institutional Investors (NII): 15% of the total issue
Future Growth Roadmap
Swiggy’s growth strategy includes:
- Service Expansion: Adding more products and services to drive higher engagement.
- Wider Partner Network: Partnering with additional vendors to increase options for users.
- Optimising Logistics: Improving last-mile delivery to provide faster service and improve profit margins.
- Data-Driven Marketing: Boosting brand recall through targeted, analytical marketing strategies.
Easy Investment with HDFC Sky’s ‘One-Click IPO’ Feature
Investing in the Swiggy IPO is now straightforward with HDFC Sky’s ‘One-Click IPO’ tool. Here’s how to get started:
- Login to HDFC Sky: Use your credentials to sign in.
- Access IPO Section: Go to “Indian Stocks” and click “IPO.”
- Choose Swiggy IPO: Select Swiggy from the list and hit “Apply Now.”
- Enter Bid: Set your bid amount and review details.
- Make Payment: Use UPI for payment.
- Approve Mandate: Authorize via your UPI app.
- Submit Order: Finalize by placing your order.
Why Choose HDFC Sky’s One-Click IPO?
- Quick and Easy: Apply with a single click and reduce paperwork.
- Stay Updated: Get real-time notifications for allotment and refunds.
- Centralised Platform: Track all your IPO investments in one place.
- Convenient Access: Apply from anywhere using the HDFC Sky app or web portal.
Swiggy’s IPO could be your gateway to growth in India’s expanding convenience economy. With HDFC Sky’s One-Click feature, participation in this IPO is just a click away—don’t miss out on this investment opportunity!
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