Swiggy, a leading company in the food and grocery delivery space, is gearing up to make its stock market debut through its initial public offering (IPO). The company’s IPO will open for subscription on November 6, 2024, and close on November 8, 2024.
Swiggy IPO Key Details:
Issue Opening Date: November 6, 2024
Issue Closing Date: November 8, 2024
Price Band: ₹371-₹390 per share
Allotment Date: November 11, 2024
Credit to Demat Account: November 12, 2024
Initiation of Refund: November 12, 2024
Listing Date: November 13, 2024
The ₹11,327 crore IPO is a book-built issue that includes the issuance of fresh equity shares amounting to ₹4,499 crore. The issue also has an offer-for-sale (OFS) component of 17.51 crore shares worth ₹6,828.43 crore.
The company has set aside 75% of the total number of shares on offer for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.
Investors including Accel India IV (Mauritius), Inspired Elite Investments, Apoletto Asia, Alpha Wave Ventures, Coatue PE Asia XI, DST EuroAsia V, Elevation Capital V, Tencent Cloud Europe, MIH India Food Holdings, and Norwest Venture Partners VII-A Mauritius will be offloading their stakes through the OFS route.
According to Swiggy’s red herring prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI), the company plans to use the funds from the fresh equity issue to increase its investment in its material subsidiary, Scootsy. The funds will be utilised for repayment of certain borrowings along with expanding the company’s network of dark stores.
The company intends to invest ₹755.4 crore to set up new dark stores as part of its endeavour to expand its dark store network for the quick commerce segment and ₹423.3 crore for making lease / licence payments for these dark stores. Swiggy also stated that ₹703.4 crore will be used for enhancing the company’s technology and cloud infrastructure. Additionally, some of the funds will be utilised for brand marketing, business promotion, and fuelling inorganic growth.
Swiggy is a giant in the food and grocery delivery segment in India. The company started its food delivery business in 2014 and entered into the quick commerce space in 2020. In addition to delivering food and grocery items, Swiggy also allows customers to send parcels through its Swiggy Genie feature. Moreover, customers can also make dinner reservations or event bookings through Dineout and SteppinOut, respectively.
For the quarter ended June 30, 2024, Swiggy reported a consolidated gross revenue of ₹3,477 crore.