Swiggy Ltd. and Zomato Ltd. are India’s top food delivery services. Soon, they will not only compete in satisfying cravings but also in the stock market as Swiggy plans to launch its initial public offering (IPO) next week. Zomato went public in 2021 during a boom in stock offerings after COVID-19.
Market Overview
The online food delivery market in India is expected to reach $44 billion in revenue by 2024. It is projected to grow at an annual rate of 16% over the next five years. User penetration is expected to be 18.3% this year.
Comparison of Swiggy and Zomato IPOs
Price Band:
Zomato’s IPO price was Rs 72-76 per share.
Swiggy IPO’s price range is set at Rs 371-390 per share.
Lot Size:
The minimum lot size for Zomato was 195 shares. For Swiggy’s IPO, it is 38 shares.
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Issue Size:
Zomato aimed to raise Rs 9,375 crore (with Rs 9,000 crore as fresh shares and Rs 375 crore as an offer for sale).
Swiggy’s IPO is larger, targeting Rs 11,327 crore (with Rs 4,499 crore as fresh shares and Rs 6,828 crore as an offer for sale).
Valuation at IPO:
Zomato was valued at Rs 59,623 crore at the upper price band during its IPO in 2021.
Swiggy values itself at Rs 87,299 crore.
Shares for Retail Investors:
Zomato offered 18% of its IPO shares to retail investors.
Swiggy plans to offer 10% of its IPO shares to retail investors.
Swiggy IPO is anticipated to open shortly, aiming to raise Rs 11,327 crore and positioning the company at a valuation of Rs 87,299 crore, presenting a promising investment opportunity.