Swiggy’s Rs 11,300 crore IPO set to open on November 6: What you need to know

India’s leading food delivery platform, Swiggy, is readying for its highly anticipated initial public offering (IPO), set to open on November 6 and close on November 8. This major market debut aims to raise Rs 11,300 crore, with a fresh issue component valued at Rs 4,500 crore. Priced within a band of Rs 371-390 per share, this IPO marks Swiggy’s maiden step into the stock exchanges BSE and NSE, where it will directly compete with Zomato, its primary rival in the food delivery and quick commerce sectors.

Swiggy’s valuation adjustments amid market challenges

Swiggy initially pursued a valuation of $15 billion but has recalibrated its target, now seeking an estimated valuation between $12.5 billion and $13.5 billion. The decision comes amid heightened market volatility and liquidity concerns, impacting several recent IPO listings. According to Zee Business analysts, this valuation reflects prudent adjustments aimed at appealing to a wider pool of institutional and retail investors. Despite these challenges, Swiggy’s IPO is expected to be one of the largest offerings this year, following Hyundai India’s recent blockbuster debut.

Strategic growth and the quick commerce factor

Swiggy has strategically expanded beyond food delivery into quick commerce, aiming to leverage the growing demand for rapid grocery and essentials delivery. This pivot has seen significant investments to compete with Zomato and other players in the grocery delivery space, which has become a critical revenue channel. Swiggy's last funding round, led by Invesco in 2022, valued the company at $10.7 billion, underscoring investor confidence despite ongoing sector-wide cash burn and profitability hurdles.

Key insights for potential investors

Zee Business experts suggest that the Rs 371-390 price range reflects a “fair entry point” into a high-growth yet competitive market. Investors may consider Swiggy’s consistent market share gains and diversified service portfolio as potential upsides. However, industry observers also caution about Swiggy’s path to profitability, as intensified competition and high operational costs in both food delivery and quick commerce continue to pose challenges.

As Swiggy’s IPO launch nears, investor sentiment remains cautiously optimistic, with analysts emphasizing long-term growth potential balanced by sector volatility.