Swiggy IPO: Everything You Need to Know
Overview of the Swiggy IPO
We will discuss in detail one of the most hyped IPOs: Swiggy. I will divide the entire IPO into 10 simple points to make it easier for you. You will get all the important and relevant information in this single article.
What is an IPO?
Timeline
The IPO is set to open from November 6th to 8th. The allotment will be decided on November 11th, with money or shares expected to be available by November 12th. The tentative listing date for the IPO is November 13th.
Key Details of the IPO
Lot Size
In the retail category, the lot size is 38 shares, with a lot amount of ₹1,820. Retail investors can apply for a maximum of 13 lots, leading to a maximum basket size of ₹92,660. The minimum application for retail is 14 lots, or ₹7,480. For the AI small category, the application must be for 68 lots or more, with an amount of ₹10,770.
Price Band
The price band for the IPO will range from ₹371 to ₹390. This is a crucial price band; when applying in the retail category, ensure you choose the cut-off price. If applying in the off-price category, enter the price of ₹390 directly.
IPO Size
The total size of the IPO is ₹1,132.7 crores, with a fresh issue of ₹449 crores and the balance being offered for sale. An additional ₹25 lakhs is allocated for employee offerings.
Purpose of the Funds
The funds raised will be utilized for branding, marketing, infrastructure, and business promotion expenses. The focus will also be on brand awareness and supporting organic growth.
Market Cap and Competitors
Swiggy’s Market Cap
Swiggy’s market cap is projected at ₹87,300 crores at the highest price point, while its listed competitor has a market cap of ₹222,000 crores.
Order Metrics
Swiggy’s growth in the food delivery sector is evident. The gross order value has surged from ₹2,122 crores in 2022 to over ₹34,000 crores in 2024. The average monthly orders per user have also increased from 4.14 to 4.5.
Financial Insights
Contribution Margin
Swiggy’s food contribution margin rose from 1.6 to 6.24 in Q1 of FY 2025, signaling positive growth for the industry.
Revenue Growth
Revenue has doubled from ₹6,000 crores in 2022 to almost ₹12,000 crores in 2024, although the company’s PAT remains negative. However, the industry’s outlook is promising.
Future Outlook and Valuation
Profitability Potential
Currently, Swiggy is priced at around 8%, and if it reaches 5% profitability, it could indicate a viable future for the company.
Valuation Comparison
In terms of valuation, Swiggy’s IPO is coming at a 60% discount compared to its competitor Zomato. While Swiggy’s business is about 25% smaller, its valuation is significantly lower.
Conclusion
What do you think about Swiggy’s IPO? Share your thoughts in the comments below! And as we approach Diwali, I wish you and your family a joyous celebration. May your portfolio soar like a rocket in the coming year!