Swiggy IPO Opens Tomorrow: All You Need to Know About Investment, Price Band, and Listing Date

Swiggy, the food and grocery delivery giant, is set to open its IPO on November 6, 2024, closing on November 8. The public offering, valued at Rs 11,327.43 crore, consists of a fresh issue worth Rs 4,499 crore and an offer for sale (OFS) worth Rs 6,828.43 crore.

Retail investors can enter at a price band of Rs 371-390 per share, requiring a minimum investment of Rs 14,820. Swiggy’s listing on the stock exchanges is expected by November 13, 2024. This IPO aims to raise Rs 1,952.43 crore more than Zomato’s Rs 9,375 crore IPO from July 2021, although Swiggy’s buzz in the grey market has been lukewarm, reflected in a recent GMP of Rs 7, down from last week’s Rs 25.

Swiggy’s financials reveal a pattern of steady revenue growth but continued losses. Since its founding in 2014, the company has yet to turn a profit, unlike its main competitor, Zomato, which became profitable in early FY24. Swiggy’s FY23 revenue reached Rs 8,714.45 crore, up from Rs 6,119.78 crore in FY22, with net losses rising to Rs 4,179.31 crore.

FY24 saw further revenue growth to Rs 11,634.35 crore, with a narrower loss of Rs 2,350.24 crore. Despite 42.4% revenue growth from FY22-23, Swiggy’s income remains heavily reliant on its top 50 cities, compared to Zomato’s wider reach in 1,000 cities.

Investment opinions on the IPO are divided. SAMCO Securities advises caution, citing Swiggy’s ongoing losses, competition, and valuation concerns. Meanwhile, Bajaj Broking sees potential for long-term gains but notes the absence of key profitability indicators like PAT and RoCE. Analysts indicate that while the IPO might attract risk-tolerant investors, the high price-to-book valuation and lack of profitability may deter cautious ones.