L-R: Mr. Abhishek Agarwal, VP-Investor Relations, Swiggy Limited;
Mr. Rohit Kapoor, Chief Executive Officer – Swiggy Food, Swiggy Limited;
Mr. Sriharsha Majety, Managing Director & Group Chief Executive Officer, Swiggy Limited;
Mr. Rahul Bothra, Chief Financial Officer, Swiggy Limited;
Mr. Amitesh Jha, CEO – Instamart, Swiggy Limited
MUMBAI, 30 OCTOBER, 2024 (GPN): The Swiggy initial public offering (IPO) price band has been fixed in the range of Rs. 371 to Rs. 390 per equity share of the face value of Rs. 1. The IPO will open on Wednesday, November 6, and will close on Friday, November 8. The allocation to anchor investors for the Swiggy IPO is scheduled to take place on Tuesday, November 5. The Swiggy IPO includes a new offering worth Rs. 4,499 crore, along with an offer-for-sale (OFS) of 175,087,863 equity shares from the company’s selling shareholders.
In the OFS, the shareholders selling their stakes include Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings B.V, Norwest Venture Partners VIIA-Mauritius, and Tencent Cloud Europe B.V.
The floor price and the cap price are 371 times and 390 times the face value of the equity shares. Swiggy Limited’s revenue soared by 34% between March 2023 and March 2024. Meanwhile, its losses narrowed from Rs. 4,179.31 crore to Rs. 2,350.24 crore in the same period in financial year 2024 based on restated consolidated financial information, the price to earnings ratio is not ascertainable. The lot size is 38 equity shares and in multiples of 38 equity shares thereafter.
Swiggy has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. Employees are reserved up to 750,000 equity shares. A discount of Rs. 25 apiece is being offered to the eligible employees.
Tentatively, the basis of allotment of shares will be finalised on Monday, November 11, and the company will initiate refunds on Tuesday, November 12, while the shares will be credited to the demat account of allottees on the same day following refund. Swiggy share price is likely to be listed on BSE and NSE on Wednesday, November 13.
Early investors such as Accel, Elevation Capital and Norwest Venture Partners will divest part of their holdings in Swiggy in the OFS, according to media reports. Swiggy’s founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy will sell part of their stakes in the public offering.
The company plans to utilise the net proceeds to invest in its key subsidiary, Scootsy, manage its debt obligations, grow its network of dark stores in the quick commerce sector, and to cover lease or licensing fees related to those dark stores.
The company will invest Rs 755.4 crore in expanding its network of dark stores or warehouses. The lease and licence payments for dark stores would amount to Rs 423.3 crore. The investment will take Swiggy’s dark store count to 741, covering about 2.59 million square feet. At the end of the June quarter, Swiggy Instamart, the company’s quick commerce business, had 557 dark stores. In September, Swiggy had 605 dark stores.
In addition, it aims to invest in technology and cloud-based infrastructure. The company also indicated that it will allocate funds for brand marketing and related promotional expenses. Moreover, it intends to set aside resources to support inorganic growth through yet-to-be-specified acquisitions, as well as for general corporate needs.
Established in 2014, Swiggy offers users a convenient platform accessible through a single app to discover, select, order, and pay for meals (Food Delivery), groceries, and household items (Instamart), with on-demand delivery facilitated by its partner network.
The company operates five business units, which encompass Food Delivery; Out-of-home consumption, covering restaurant outings and events; Quick Commerce, focusing on the on-demand delivery of groceries and household goods; Supply chain and distribution, including business-to-business (“B2B”) deliveries, warehousing, logistics, and distribution for retailers and wholesalers; and Platform innovation, aimed at new initiatives and services like Swiggy Genie and Swiggy Minis.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.The GMP of Swiggy’s IPO today is +25. This indicates Swiggy share price was trading at a premium of Rs. 25. Considering the upper end of the Swiggy’s initial public offering price band and the current premium in the grey market, the estimated listing price of Swiggy share price is indicated at Rs. 415 apiece, which is 6.41% higher than the IPO price of Rs. 390.
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