The Swiggy IPO will start accepting bids from investors on November 6. The company aims to raise a significant amount of money—Rs 11,327.43 crore—through this IPO. The funds will be raised through two main methods fresh share issuance and an offer for sale (OFS). The IPO has a price band set between Rs 371 and Rs 390 per share. Investors can submit their bids until November 8. After the bidding period closes, the final share allotment is expected to be finalized on November 11.
Since its founding in 2014, Swiggy has not achieved profitability. It has experienced net losses and negative cash flow, which indicates ongoing financial challenges. By going public, Swiggy hopes to raise new capital to address these challenges. The additional funds could be used to grow its business, invest in new technologies, expand its services, and improve its financial health. Swiggy faces intense competition in the Indian food delivery market, especially from Zomato, a major rival that recently achieved profitability. Since Zomato is already profitable and listed in the stock market, it could attract some more investors compared to Swiggy, which is still navigating financial losses.
Swiggy is offering a special incentive for its employees to invest in the IPO. 750,000 shares are reserved specifically for Swiggy employees, and they can purchase these shares at a discount of Rs 25 below the public issue price. Several leading financial institutions—such as Kotak Mahindra Capital, Citigroup Global Markets, and ICICI Securities—are acting as book-running lead managers for the IPO.
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