Swiggy, the household name in India’s on-demand delivery sector, is set to take a significant leap forward with its Initial Public Offering (IPO) in November 2024. The Swiggy IPO is a chance for investors to join in Swiggy's exciting growth trajectory, which has expanded from food delivery to encompass a broader range of convenience services.
Here’s a detailed insight into the Swiggy IPO, complemented by HDFC Sky’s ‘One-Click IPO’ tool to enhance your investing experience.
About Swiggy: Pioneering Convenience in Delivery
Founded in 2014, Swiggy has revolutionized how consumers access delivery services. The platform not only focuses on food delivery but also offers groceries, logistics, event bookings, and restaurant reservations—all through a single, user-friendly app. With features like Swiggy Money for seamless payments and a subscription model known as “Swiggy One,” which provides exclusive discounts, Swiggy enhances customer experience while driving user engagement.
The company's robust technology infrastructure supports a vast network of partners, enabling them to leverage data analytics and operational solutions for improved service delivery. Recognized as a leading brand in the Consumer Technology & Services sector, Swiggy's reputation positions it for rapid growth and customer retention.
Key Swiggy IPO Facts
Participating in the Swiggyi IPO is a straightforward process. If you haven’t already, the firststep is to open free demat account online
| Aspect | Details |
| IPO Period | November 6 - November 8, 2024 |
| Listing Date | November 13, 2024 |
| Share Price Range | ₹371 to ₹390 per share |
| Lot Size | 38 shares |
| Total IPO Size | ₹11,327.43 crores |
| Fresh Issue | ₹4,499 crores |
| Offer for Sale | ₹6,828.43 crores |
| Employee Discount | ₹25 per share |
| Issue Type | Book Built Issue IPO |
For seasoned investors with experience in commodity trading, this IPO offers a great way to diversify portfolios by adding shares from the growing online delivery food market
Timeline for Swiggy IPO
- Open Date: November 6, 2024
- Close Date: November 8, 2024
- Allotment Basis: November 11, 2024
- Refunds Initiated: November 12, 2024
- Shares Credited: November 12, 2024
- Official Listing: November 13, 2024
Swiggy's Allocation of Shares
- Qualified Institutional Buyers (QIB): 75% of Net Issue
- Retail Investors: 10% of Net Issue
- Non-Institutional Investors (NII): 15% of Net Issue
Utilisation of IPO Proceeds
Swiggy plans to allocate the funds raised through the IPO strategically to bolster its growth. To attract more investors, Swiggy plans to utilise its IPO funds for future expansions, further solidifying its dominance in the Indian market. Those interested in investing can easily participate by using a demat app for faster and more efficient trading.
Key areas of investment include:
1. Debt Repayment: Addressing borrowings, particularly related to Scootsy.
2. Infrastructure Expansion: Enhancing the Dark Store network for Quick Commerce.
3. Technology Advancements: Upgrading its tech and cloud capabilities.
4. Marketing Initiatives: Boosting brand visibility through targeted campaigns.
5. Strategic Acquisitions: Supporting potential mergers and acquisitions for expansion.
Financial Snapshot: Swiggy's Recent Performance
| Financial Metrics | Jun 30, 2024 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 |
| Total Assets (in Cr) | 10,341.24 | 10,529.42 | 11,280.65 | 14,405.74 |
| Revenue (in Cr) | 3,310.11 | 11,634.35 | 8,714.45 | 6,119.78 |
| Profit After Tax (in Cr) | -611.01 | -2,350.24 | -4,179.31 | -3,628.90 |
| Net Worth (in Cr) | 7,444.99 | 7,791.46 | 9,056.61 | 12,266.91 |
| Reserves (in Cr) | -7,750.85 | -7,880.85 | -6,510.34 | -3,311.10 |
| Total Borrowings (in Cr) | 256.61 | 211.19 | - | - |
Strengths of Swiggy's Offering
- Market Leader: Swiggy's innovative approach to hyperlocal commerce keeps it ahead in the market.
- User Engagement: With over 112 million users, the platform sees significant transaction activity.
- Diverse Offerings: Swiggy's extensive service range attracts a wide user base.
- Technology Driven: A robust technology stack enhances integration and operational efficiency.
- Strong Leadership: The experienced team drives continuous innovation and transparency.
Challenges to Consider
- Ongoing Losses: Swiggy's path to profitability is complicated by continued net losses.
- Competitive Pressure: Retaining users amidst fierce competition is crucial for revenue stability.
- Partnership Maintenance: Maintaining restaurant and merchant relations is vital for service delivery.
- Operational Management: Effective management of Dark Stores is essential to prevent service disruptions.
- Regulatory Risks: Changes in e-commerce regulations may impact operational dynamics.
Future Directions for Growth
Swiggy is focused on amplifying its market presence by:
- Expanding Product Lines: Introducing new services to enhance user engagement.
- Strengthening Partnerships: Increasing collaboration with businesses to improve service offerings.
- Improving Margins: Streamlining operations to boost profitability.
- Tech Investments: Continuing investments in technology for improved service efficiency.
- Brand Promotion: Engaging customers through strategic marketing initiatives.
How to Invest in Swiggy's IPO via HDFC Sky
Investing in Swiggy's IPO is made simple with HDFC Sky's user-friendly interface. Follow these steps:
1. Log In: Access your HDFC Sky account with your credentials.
2. Navigate to IPOs: Find the IPO section under the "Indian Stocks" tab.
3. Select Swiggy: Choose the Swiggy IPO from the list and click “Apply Now.”
4. Enter Your Bid: Input your bid amount and customize your order as required.
5. Choose Payment Method: Opt for UPI to facilitate payment.
6. Approve Transaction: Use your UPI app to authorize the payment.
7. Complete Order: Finalize your application by submitting your order.
Benefits of HDFC Sky’s One-Click IPO Feature
- Streamlined Process: Effortlessly apply with minimal paperwork.
- Instant Updates: Receive real-time notifications regarding your application.
- Centralized Management: Monitor all IPO investments in one convenient location.
- Accessibility: Apply from anywhere via the HDFC Sky app or website.
Swiggy's upcoming IPO is a noteworthy opportunity for investors, and with HDFC Sky's streamlined application process, participating in this growth journey has never been easier. Don’t miss out on the chance to be part of Swiggy's future!