Since its launch in 2014, Swiggy Limited has grown into a key player in India’s on-demand service industry. Through its user-friendly app, Swiggy connects millions with services beyond food delivery, expanding into groceries and logistics. Now, as it prepares to elevate its growth, Swiggy is inviting investors to join in its Initial Public Offering (IPO) slated for November 2024.
Get ready to explore the Swiggy IPO and learn how HDFC Sky’s innovative ‘One-Click IPO’ feature streamlines your investment experience. This user-friendly tool makes it simple to join in on this promising venture in the rapidly growing on-demand delivery landscape.
Whether you’re experienced in the share market or just starting out, commodities trading could be a part of your strategy for investing in Swiggy’s IPO.
Swiggy IPO Overview
Swiggy is looking to raise a substantial ₹11,327.43 crores through this IPO, which consists of both a fresh issue and an offer for sale. Here are the critical details:
| Details | Information |
| IPO Opening Date | November 6, 2024 |
| IPO Closing Date | November 8, 2024 |
| Expected Listing Date | November 13, 2024 |
| Face Value | ₹1 per share |
| Price Band | ₹371 to ₹390 per share |
| Lot Size | 38 Shares |
| Total Issue Size | 290,446,837 shares |
| Fresh Issue Size | 115,358,974 shares |
| Offer for Sale Size | 175,087,863 shares |
| Employee Discount | ₹25 per share |
| Issue Type | Book Built Issue IPO |
| Listing Exchanges | BSE, NSE |
To participate in the Swiggy IPO, you’ll need a Demat account, which holds shares electronically for easy trading. Nowadays, demat account opening online is a simple and straightforward process.
Key Dates for the IPO Process
| Stage | Date |
| IPO Subscription Begins | November 6, 2024 |
| IPO Subscription Ends | November 8, 2024 |
| Allotment Results | November 11, 2024 |
| Refunds Initiation | November 12, 2024 |
| Shares Credited to Demat | November 12, 2024 |
| Shares Listing Date | November 13, 2024 |
Once your Demat account is set up, apply for the Swiggy IPO using a share market trading app. These user-friendly apps simplify the IPO process, making it easy for beginners to apply and track their allotment status.
Swiggy IPO Reservation
- QIB Shares Offered: Not less than 75% of the Net Issue
- Retail Shares Offered: Not more than 10% of the Net Issue
- NII (HNI) Shares Offered: Not more than 15% of the Net Issue
Company Profile: A Snapshot of Swiggy
Swiggy is revolutionising the convenience services sector in India with its comprehensive app that caters to a wide array of needs, including food delivery, grocery shopping, event bookings, and more.
- Innovation in Delivery: Swiggy has been at the forefront of hyperlocal commerce, launching its food delivery service in 2014 and expanding into quick commerce in 2020.
- User Engagement: With initiatives like the “Swiggy One” membership, users enjoy discounts and benefits, while innovative payment solutions simplify the buying experience.
- Partner Support: Swiggy equips its partners with analytical tools and logistics support, ensuring efficient operations and business growth.
Financial Overview
As Swiggy approaches its IPO, understanding its financial trajectory is essential. Here’s a look at some key financial figures:
| Fiscal Year | Total Assets (₹ Cr) | Revenue (₹ Cr) | Profit After Tax (₹ Cr) | Net Worth (₹ Cr) |
| 2022 | 14,405.74 | 6,119.78 | -3,628.9 | 12,266.91 |
| 2023 | 11,280.65 | 8,714.45 | -4,179.31 | 9,056.61 |
| 2024 | 10,529.42 | 11,634.35 | -2,350.24 | 7,791.46 |
| Q1 FY2024 | 10,341.24 | 3,310.11 | -611.01 | 7,444.99 |
Insights into Financial Performance
- Assets: A decrease from ₹14,405.74 crore in FY 2022 to ₹10,341.24 crore as of June 2024 suggests potential restructuring.
- Revenue Growth: An impressive rise in revenue indicates strong market demand and operational scaling.
- Profit Trends: Although Swiggy continues to incur losses, the reduction in these losses signals improvements in financial management.
IPO Objectives
The funds raised from the IPO will be directed toward:
- Debt Repayment: Repaying borrowings linked to Scootsy.
- Expansion of Quick Commerce: Enhancing the network of Dark Stores to boost efficiency.
- Technology Investment: Upgrading technology and cloud infrastructure for better service delivery.
- Brand Visibility: Allocating funds for marketing initiatives to increase Swiggy’s presence.
- Growth through Acquisitions: Exploring inorganic growth opportunities.
Strengths and Challenges
Strengths
- Market Leadership: Swiggy’s prominent position in the hyperlocal market underscores its growth potential.
- User Base: With 112.73 million users, Swiggy benefits from a broad customer base.
- Transaction Frequency: Average monthly transactions have seen a boost, reflecting user satisfaction.
- Technology Leverage: A robust technology framework supports quick service integration.
Challenges
- Financial Stability: Persistent net losses and negative cash flows pose ongoing challenges.
- Competitive Pressure: Rival offerings could affect user retention and revenue.
- Partnership Dynamics: Maintaining strong relationships with restaurant partners is critical.
- Regulatory Risks: E-commerce regulations may impact operational flexibility.
Future Vision
Swiggy’s growth strategy focuses on:
- Diversifying Offerings: Expanding services to further enhance user convenience.
- Network Expansion: Growing the Dark Store network to improve product availability.
- Operational Efficiency: Optimising last-mile delivery to enhance customer satisfaction.
- Brand Marketing: Increasing market penetration through targeted advertising strategies.
Investment Strategies for Swiggy IPO
While investing directly in the Swiggy IPO can be appealing, consider indirect routes like mutual funds through a SIP (Systematic Investment Plan). One such method is investing in mutual funds SIP app (Systematic Investment Plan).
Mutual funds offer a diversified portfolio that may include Swiggy shares post-IPO. SIPs allow for small, regular investments, helping to spread risk and maintain market presence. Focusing on mutual funds targeting large-cap or tech sector stocks can provide exposure to Swiggy while minimizing direct investment risks.
Seamless Investment with HDFC Sky
HDFC Sky’s One-Click IPO feature simplifies the process of applying for the Swiggy IPO. Here’s how to get started:
- Log In to HDFC Sky: Use your credentials to access your account.
- Find the IPO Section: Go to “Indian Stocks” and select “IPO.”
- Choose Swiggy IPO: Locate the Swiggy IPO listing and click “Apply Now.”
- Enter Your Bid: Specify your bid amount and adjust your application as required.
- Select Payment Method: Opt for UPI for seamless payment.
- Approve the Mandate: Authorise the payment via your UPI app.
- Complete Your Application: Finalise your order by placing it.
Benefits of HDFC Sky’s One-Click Feature
- Effortless Applications: Minimise paperwork with a one-click application process.
- Real-Time Updates: Stay informed with instant notifications about your application status.
- Centralised Management: Manage all IPO investments from a single platform.
- Accessibility: Apply from anywhere using the HDFC Sky app or website.
As Swiggy gears up for its IPO, this opportunity could be a significant addition to your investment portfolio. With the HDFC Sky platform streamlining the process, it’s an exciting time to consider joining Swiggy on its growth trajectory!