Swiggy Limited is coming up with an IPO with a fresh issue worth INR 4,499 crores and an offer to sell 17.51 crore shares. The company aims to invest in its subsidiary for expansion, repay borrowings, invest in technology, brand building, and pursue inorganic growth, along with funding general corporate purposes. 

Swiggy IPO – Important Dates

Also Read: Swiggy Ltd IPO; Key GMP Updates You Need to Know! Discover More

Swiggy IPO – Company Profile

Swiggy is a new-age, consumer-first technology company offering users an easy-to-use convenience platform, accessible through a unified app – to browse, select, order, and pay for food (“Food Delivery”), grocery and household items (“Instamart”), and have their orders delivered to their doorstep through the on-demand delivery partner network.

The platform can be used to make restaurant reservations (“Dineout”) and for events bookings (“SteppinOut”), avail product pick-up/ dropoff services (“Genie”), and engage in other hyperlocal commerce (Swiggy Minis, among others) activities.

The company collects user payments for transactions completed on the platform, typically including the cost of the food or product purchased, delivery fees, and other fees. They then facilitate the transfer of the cost of food or product and delivery-related fees to the partners at regular intervals after retaining certain fees. 

Swiggy IPO Fundamental Analysis

Swiggy has shown some reduction in losses over time, but it continues to operate at a significant loss, with no signs of achieving profitability in the short term. Although revenue growth has been robust, the company’s cost structure remains inefficient, with expenses persistently higher than revenue. The NAV per share and RoNW indicate that the company is facing difficulties in adding shareholder value.

 Swiggy Revenue and Expenses:

• Revenue has grown from ₹82,645.96 million in March 2023 to ₹112,473.90 million in March 2024, followed by ₹32,222.17 million as of June 2024. Although there’s growth, the expenses have continued to exceed revenue, with expenses at ₹128,843.99 million in March 2023, ₹139,473.84 million in March 2024, and ₹39,079.58 million in June 2024.
• The expenses surpassing revenue indicate ongoing operational inefficiencies or higher cost structures that the company is struggling to contain.

2. Profit and Loss After Tax:
   • The company has faced significant losses, reporting a loss of ₹41,793.05 million in March 2023, narrowing to ₹23,502.43 million in March 2024, and a further loss of ₹6,110.07 million by June 2024. While the losses have decreased, they remain substantial.
3. Diluted EPS:
   • The company’s Diluted EPS was negative, starting from ₹(19.33) in March 2023, ₹(10.70) in March 2024, and improving to ₹(2.76) as of June 2024. Although losses have been reduced, the company has not yet achieved profitability.
4. Return on Net Worth (RoNW):
   • RoNW was negative, standing at (46.15%) in March 2023, improving slightly to (30.16%) in March 2024, and reaching (8.21%) in June 2024. The negative returns indicate the company is not generating positive returns for shareholders.
5. Net Asset Value (NAV) per Equity Share:
   • NAV per share declined from ₹41.88 in March 2023 to ₹35.48 in March 2024 and further to ₹33.61 in June 2024, reflecting a decrease in the company’s net worth over time.
6. Assets and Liabilities:
   • Total assets have slightly decreased from ₹112,806.45 million in March 2023 to ₹103,412.42 million in June 2024.
   • Liabilities have risen from ₹22,240.33 million in March 2023 to ₹28,962.50 million by June 2024, indicating an increase in the company’s financial obligations.

Swiggy IPO Financial Analysis

Swiggy IPO Peer Comparison

Swiggy reported revenue of ₹112,473.90 million with negative EPS (-₹10.70) and RoNW (-30.16%). Zomato generated ₹121,140 million in revenue, with EPS ₹0.40, RoNW 1.72%, and a P/E ratio of 742.50.

Swiggy IPO Objective

The main objective of Swiggy IPO is to repay subsidiary SCOOTSY’s loans, the company plans to invest INR 137.41 crores. An additional INR 982.40 crores will support SCOOTSY’s expansion, including dark stores. INR 586.20 crores will be used for technology infrastructure, INR 929.50 crores for brand promotion, and remaining funds for corporate purposes, including operations and business development.

1. Investment in subsidiary SCOOTSY for repayment of their loan: The material subsidiary- SCOOTSY has entered into many financing arrangements. The company plans to utilise INR 137.41 crores for the said purpose.

2. Investment in subsidiary SCOOTSY for expansion: The company plans to invest INR 982.40 crores in SCOOTSY to set up dark stores and make lease payments of the same. 

3. Investment in technology and cloud infrastructure: The company aims to further innovate, iterate, and improve the technology stack to enhance the platform experience and offerings for all the users as well as the restaurant partners, merchant partners, and brand partners, and improve the operational efficiency. The company plans to spend INR 586.20 crores for the said purpose. 

4. Brand Promotion: The Company, from time to time, has entered into arrangements with various media agencies and service providers, for availing services such as media planning and implementation, buying advertisement space across various media channels, campaign management, social media management, affiliate marketing and operation and optimization of digital marketing campaigns, among other things. For the brand promotion, the company plans to invest INR 929.50 crores.

5. Funding inorganic growth and general expense: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations. 

Swiggy IPO Risks And Challenges

Swiggy IPO’s risk includes continuous loss incurred net and negative cash flows since inception. Challenges include managing Dark Stores efficiently and facing intense competition, both of which could adversely impact the company’s financial condition, business operations, and growth.

1. The company has incurred net losses in each year since incorporation and has negative cash flows from operations. If they are unable to generate adequate revenue growth and manage the expenses and cash flows, the company may continue to incur significant losses. 

2. Managing Dark Stores is critical to the Quick Commerce business and failure to do so in a cost-effective way may have an adverse effect on the business, financial condition, and results of operations.  

3. The company faces intense competition across the markets it serves and if they are unable to compete effectively, the business, financial condition, and results of operations would be adversely affected. 

Swiggy IPO – Industry & Market Potential

Indian consumers are becoming increasingly digitally savvy with a growing base of 670-680 million smartphone users which is expected to reach 950-990 million by 2028. The increase in household income and purchasing power of millions of Indians along with rapid digitisation has changed consumer behaviour, driving the demand for convenience and digital services. 

This large digitally-native consumer base along with an enabling ecosystem of gig economy and digital payments infrastructure, has led to the proliferation of a thriving hyperlocal commerce ecosystem in India. Within this ecosystem, fragmented and unorganised, high purchase frequency categories like Food Services and Retail are particularly well-disposed for hyper localisation. Hyperlocal commerce platforms are favourably placed at the intersection of these dynamics with strong value propositions for stakeholders across the value chains. 

Swiggy IPO – Type of Offer 

Swiggy plans a fresh issue of shares, seeking INR 4,499 crores to invest in its subsidiary for expansion, repay borrowings, invest in technology, brand building, and pursue inorganic growth, along with funding general corporate purposes. Additionally, the company proposes an offer for sale, intending to sell 17.51 crore existing shares.

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 4,499 crores. The company intends to utilize the proceeds from the fresh issue for investment in its subsidiary for expansion, repay borrowings, invest in technology, brand building, and pursue inorganic growth, along with funding general corporate purposes.
2. Offer for sale: Swiggy Limited is offering to sell 17.51 crore existing shares. 

Swiggy IPO Offer Size

The offer size of Swiggy Limited is INR  11,327.43 crores, consisting of a fresh issue of a fresh issue worth INR 4,499 crores and an offer to sell 17.51 crore shares. The company aims to invest in its subsidiary for expansion, repay borrowings, invest in technology, brand building, and pursue inorganic growth, along with funding general corporate purposes.

Swiggy IPO Allotment Structure

Swiggy Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. 

 ● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

Read more about Swiggy IPO Allotment Status

How to apply for the Swiggy IPO?

To apply for the Swiggy Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Swiggy Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Swiggy Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more about Swiggy IPO Day 1 Subscription Status

How do you check Swiggy IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Swiggy Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Swiggy Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Swiggy Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Swiggy Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

 ● BSE, NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) and National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more about Swiggy IPO Day 2 Subscription Status

Swiggy Ltd IPO Offer Registrar

The registrar for the Swiggy Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C-101, 1st Floor, 247 Park

L.B.S. Marg, Vikhroli West Mumbai 400 083

Tel : +91 810 811 4949

Website: www.linkintime.co.in

Read more about Swiggy IPO Day 3 Subscription Status

 Swiggy IPO  – FAQs