The long-awaited Swiggy IPO is set to open for bidding on November 6, 2024. The food and grocery delivery company is looking to raise over ₹11,000 crore from the primary market, not only to strengthen the business but also to expand the brand and enhance its technology. The Swiggy IPO would be open for subscription until 8th November 2024 to provide investors with the chance to own shares of the company.
Now, if you wish to invest in the Swiggy IPO, there are certain things you must be aware of. Read on to learn about these essential things to know, including the Swiggy IPO date, price and schedule.
10 Things to Know About Swiggy IPO
1. Swiggy IPO Schedule
As mentioned earlier, the Swiggy IPO will be open for public subscription from Wednesday, November 6, to Friday, November 8 2024. This is the period when you, as investors, can plan to participate and apply for shares.
2. Swiggy IPO Price Band and Lot Size
The Swiggy IPO price band is set between ₹371 and ₹390 per share. Moreover, the lot size for this IPO is 38 shares. So, if you are a retail investor, you would need to buy at least one lot and your minimum investment amount would be ₹14,820.
3. Grey Market Premium (GMP)
During an IPO, a significant aspect investors look at is the GMP (Grey Market Premium). This GMP is a value that measures the sentiment of the market regarding IPO in the grey market. In other words, it shows how the market values the shares before they are listed.
The Swiggy IPO GMP is currently ₹8 above the issue price, and this indicates that in the grey market, Swiggy’s shares are trading higher by ₹8 per share, at ₹398.
4. Swiggy IPO Allotment and Listing Date
The Swiggy IPO allotment is expected to be announced by November 12. Once allotted, the shares would get listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 13.
5. Offer for Sale (OFS) and Fresh Issue
The ₹11,327.43 crore Swiggy IPO includes a fresh issue of ₹4,499 crore and an Offer for Sale (OFS) valued at ₹6,828.43 crore, where existing investors would sell their shares.
6. Investor Reservation in the Swiggy IPO
Shares would be separated into distinct categories during the Swiggy IPO in order to accommodate different kinds of investors. 75% of shares are reserved for Qualified Institutional Buyers (QIB) like large financial institutions, 15% for Non-Institutional Investors (NII), and the remaining 10% for retail investors. Moreover, Swiggy has reserved up to 7,50,000 shares for its employees and is offering them at a discount of ₹25 to the issue price.
7. Merchant Bankers and Registrars
The Swiggy IPO is supported by a large group of companies and significant financial firms. The book-running lead managers of the IPO are Kotak Mahindra Capital, Citigroup Global Markets, Jefferies, and ICICI Securities. Link Intime India Private Ltd has been appointed as the registrar for the IPO to handle subscriptions and allocations to investors.
8. Swiggy Financial Performance
Before you invest your money, it is also crucial to look at the financial performance of Swiggy. This would allow you to make the best choice for yourself. Swiggy has shown strong growth in revenue. The company earns its income from food delivery and quick commerce. For the fiscal year ending March 2024, the company reported revenue of ₹11,247 crore, which was a rise of 36% from the previous year. Though Swiggy has reduced its losses to ₹2,208.01 crore from ₹4,275.74 crore, the company still faces financial challenges.
9. Swiggy IPO Objectives and Use of Funds
Here is how Swiggy intends to utilise the proceeds from the IPO:
- Investing in Scootsy, a subsidiary of Swiggy, to grow and expand services.
- Upgrading technology and cloud infrastructure to improve the delivery platform.
- Increasing brand marketing to enhance visibility and attract more customers.
- Supporting acquisitions for the exponential growth of the company.
- Covering general corporate expenses to look after operational stability.
10. Swiggy IPO Anchor Bidding
Anchor investors can place bids a day before the main IPO opens, which is on 5th November 2024. These anchor investors are usually large institutions that invest early to show confidence in the IPO.
Conclusion
While the market is gearing up for the Swiggy IPO, ensure that you do your research thoroughly and consider your financial situation before making an investment decision. Additionally, when placing your orders, be sure to use a reliable website like Tradejini. With Tradejini, you can enjoy a smooth and reliable trading experience and ensure your transactions are secure.
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