Swiggy IPO – GMP, risk factors and all you need to know

Nov 6, 2024

By: Sourabh Jain

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Swiggy IPO

Bengaluru-based Swiggy’s initial public offering (IPO) is now open and will close on Friday, November 8.

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Price band

Swiggy has fixed a price band of ₹371 to ₹390 per share for its public issue.

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About the company

Swiggy is a Bengaluru-based food and grocery delivery platform. It also offers logistics and warehousing solutions for wholesalers and retailers.

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IPO size

Swiggy is looking to raise ₹11,327.43 crore from the current IPO. This includes a fresh issue of ₹4,499 crore and an offer for sale (OFS) component of ₹6,828.43 crore.

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Lot size

Investors can bid for a minimum of 38 shares and in multiples of 38 shares thereafter.

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Current operations

Swiggy currently operates around 19,000 units for its quick commerce platform Instamart and over 600 dark stores across 43 cities. It has over 5,400 employees.

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Financials

The company’s income was ₹11,634.35 crore in FY24, up from ₹8,714.45 crore in FY23. The company reported a loss of ₹2,350.24 crore in FY24, down from ₹4,179.31 crore loss reported in FY23.

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Risk factors

The company faces tough competition from Zomato, which competes with Swiggy in all segments. The company has yet to report a PAT and faces high operational costs.

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Swiggy IPO GMP

Swiggy is currently commanding a grey market premium (GMP) of ₹20 per share.

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Objectives of the issue

The funds raised will be used for investment in its subsidiary Scootsy, investment in technology, brand marketing, and more.

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Disclaimer

The content on this website is for informational purposes only and should not be construed as investment advice. We recommend that readers consult certified, qualified, and registered advisors for professional and personalised financial advice.

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