Swiggy IPO opens with strong brokerage support for long-term gains
The company aims to raise ₹11,327.43 crore from this initial offer, which will consist of a mix of fresh shares and OFS.
Swiggy Limited launched its highly anticipated initial public offering (IPO) on 6th November 2024, marking its debut in the Indian primary market. The IPO will be open for bidding until 8th November, with a price band set between Rs 371 and Rs 390 per share. Through this offer, the popular food delivery platform aims to raise Rs 11,327.43 crore, comprising fresh issue shares and an offer for sale.
At a price band set between Rs 371-390, the IPO allows investors to apply with a minimum lot size of 38 shares, costing around Rs 14,820. Notably, Swiggy has already raised Rs 5,085.02 crore from anchor investors. The three-day public subscription window will close on November 8, 2024, with shares expected to debut on the BSE and NSE by November 13, 2024.
Strong fundamentals and growth strategy drive “Subscribe” ratings
Deven Choksey Research has recommended subscribing, emphasizing Swiggy’s focus on the fast-growing hyperlocal commerce and Quick Commerce markets. Analysts point out Swiggy’s increased Average Order Value (AOV) and expanded Dark Store network, which grew from 301 in FY22 to 523 in FY24. The unified app model, which includes food delivery, groceries, and household items, enables Swiggy to streamline operations and improve customer acquisition, setting it apart from competitors.
Swastika Investmart also advised subscribing for the long term, albeit with a note of caution for risk-averse investors. Shivani Nyati, Head of Wealth at Swastika, highlighted that Swiggy’s negative P/E ratio and loss-making status might concern conservative investors. However, Swiggy's pricing, valued at around 7.8x market cap-to-sales, appears reasonable against Zomato’s valuation, presenting an appealing opportunity for investors aiming to leverage growth in India’s dynamic hyperlocal market.
With steady expansion across India, Swiggy is well-positioned to capitalize on its diverse services, making it a promising prospect in the evolving commerce landscape.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Retirement Planning: In how many years your Rs 25K monthly SIP investment will grow to Rs 8.8 cr | See calculations
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
12:16 PM IST