The much-anticipated Swiggy IPO subscription is set to open on November 6 and will remain open until November 8. As investors gear up for this significant offering, the importance of the Red Herring Prospectus (RHP) cannot be overstated. The RHP provides crucial insights into Swiggy’s operations, financial performance, risks, and future prospects.
| Table of Contents | |
|---|---|
| Offer Details | |
| Business Focus | |
| Board Members | |
| Financials | |
| Key Risks | |
| Subsidiaries | |
| Competitor | |
| IPO Timeline | |
| Listing Plans | |
Offer Details
The Swiggy IPO comprises a fresh issue of ₹4,499 crore alongside an offer-for-sale (OFS) comprising 175,087,863 equity shares by various corporate selling shareholders. Notable contributors to the OFS include Accel India IV (Mauritius) Ltd, Coatue PE Asia XI LLC, and Elevation Capital V Ltd, among others.
Business Focus
Swiggy positions itself as an innovative technology company that operates across multiple verticals. Its services extend beyond food delivery to include groceries and Instamart, tapping into hyperlocal commerce activities through its robust platform.
Board Members
Swiggy’s board features several key individuals including Anand Kripalu, Sriharsha Majety, and Lakshmi Nandan Reddy Obul. These members bring a wealth of expertise in technology and operations, essential for steering Swiggy towards its strategic goals.
Financials
In terms of financial performance, Swiggy has shown resilience with a remarkable 34% revenue growth and a 44% increase in profit after tax (PAT)
Despite promising growth, Swiggy faces notable challenges, such as continuous net losses since inception and negative operating cash flows. The need to efficiently maintain and expand its user base remains a critical focus to mitigate these risks. Swiggy operates through subsidiaries such as Scootsy Logistics Private Ltd and Supr Infotech Solutions Private Ltd, which contribute to its overall strategy and growth in logistics and technology solutions. In the competitive landscape, Swiggy’s primary rival is Zomato Ltd, which is currently the sole listed peer with a staggering P/E ratio of 634.50. This positioning highlights the intense competition within India’s food delivery market. As for the timeline, the allocation for anchor investors is slated for November 5. The price band announcement was on October 30, with the allotment finalization expected on November 11. Shares are anticipated to be listed on November 13, 2023. Once the IPO is completed, Swiggy shares are expected to be listed on both the BSE and NSE, further solidifying the company’s footprint in the Indian equity markets. Potential investors are encouraged to refer to the RHP for comprehensive insights into the offering. In recap, the Swiggy IPO presents a significant opportunity amid a growing business sector. The details from the RHP provide essential insights for potential investors aiming to make informed decisions. As the subscription opens soon, now is the ideal time for diligent research and consideration.Key Risks
Subsidiaries
Competitor
IPO Timeline
Listing Plans
Conclusion
FAQ
The IPO subscription opens on November 6 and closes on November 8.
The IPO includes a fresh issue of ₹4,499 crore and an OFS of 175,087,863 equity shares.
Major stakeholders include Accel India IV, Apoletto Asia, and Elevation Capital, among others.
Key risks include continuous net losses and the challenge of maintaining a growing user base.
Swiggy has seen a 34% growth in revenue and a 44% increase in PAT over the reported fiscal year.
