Swiggy IPO: Price band set at ₹371-390 per share; check GMP, issue details, more

The Swiggy Limited IPO price band has been fixed in the range of ₹371 to ₹390 per equity share of the face value of ₹1. The Swiggy IPO date of subscription is scheduled for 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 floor price and the cap price are 371 times and 390 times the face value of the equity shares. Since company has incurred loss in financial year 2024 based on restated consolidated financial information, the basic and diluted EPS is negative, and hence, the price to earnings ratio is not ascertainable. The Swiggy IPO lot size is 38 equity shares and in multiples of 38 equity shares thereafter.

Swiggy IPO 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 ₹25 apiece is being offered to the eligible employees.

Tentatively, Swiggy IPO 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.

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.

The only publicly traded competitor of the company is Zomato Ltd, which has a price-to-earnings ratio of 634.50.

Swiggy Limited's revenue climbed by 34% between March 2023 and March 2024. Meanwhile, its loss narrowed from ₹4,179.31 crore to ₹2,350.24 crore in the same period.

Swiggy IPO details

Swiggy's IPO includes a new offering worth ₹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 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 cover lease or licensing fees related to those 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.

Swiggy IPO GMP today

Swiggy IPO GMP today is +25. This indicates Swiggy share price was trading at a premium of ₹25 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Swiggy share price is indicated at ₹415 apiece, which is 6.41% higher than the IPO price of ₹390.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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