Swiggy IPO: On November 6th, 2024, bids will be accepted for Swiggy Ltd’s first public offering (IPO) until November 8th, 2024. As a result, the public issue application deadline has been extended by two days. Swiggy, an online meal delivery service, has set the pricing range for its IPO (IPO) at ₹371 to ₹390 per equity share. The goal of the company’s public offerings, including new issues and offers for sale (OFS), is to raise ₹11,327.43 crore. The book build issue exhibited a lacklustre reaction on the first day of bidding, based on Swiggy’s IPO subscription status. Meanwhile, Swiggy’s share price on the black market has been relatively stable. Stock market watchers have reported that Swiggy shares are currently offered at a premium of ₹11 on the grey market.
Like Wednesday’s grey market premium, today’s Swiggy IPO GMP (Grey Market Premium) stands at ₹11. Market watchers have speculated that the trend reversal in India’s secondary market is to blame for the continued stability of the grey market mood surrounding Swiggy’s IPO (IPO). They pointed out that the severe selling pressure in the Indian stock market caused Swiggy shares to lose their lustre before the issue opening date. The Swiggy IPO GMP anticipated a comeback should the Indian stock market continue to win in the coming sessions.
Subscriber status for Swiggy IPO
In the first two days of the issuance, the public portion had been booked 0.20 times, the retail portion 0.70 times, and the NII portion 0.09 times.
Evaluation of Swiggy IPO
Under the subscriber heading in the book Build Problem, Dr Choksey FinServ stated, “Swiggy’s focus on strategy on local trade positions it as an important player in the sector, powered by an innovation-led culture.” With an increasing network of Dark Stores, from 301 in FY22 to 523 in FY24, and an average order value (AOV) steadily rising, the company is prepared to improve user engagement and efficiency in operations. With 112.73 million users as of June 30, 2024, Swiggy has increased thanks to a streamlined app experience that unifies its many services. Expanding Dark Stores and adding non-food categories aims to increase basket sizes and meet the growing consumer demand. Strong retention rates and an increasing disparity in Monthly GOV per MTU result from Swiggy’s customer-centric approach, which is marked by considerable transaction velocity and a personalized user experience. Swiggy is well-positioned for continued growth thanks to its strengths and the expected expansion of the online food delivery and Quick Commerce industries. The company is priced at 8x Price to Sales at the upper band, 76% lower than its competitors. Therefore, a ‘SUBSCRIBE’ rating is given.
“At an upper price band of +390/sh, the IPO will be priced at EV/sales of 7.8x vs listed sector peer of 17.6x on FY24 revenue,” Indsec Securities said, adding that the book build issue has been tagged as a subscriber. Compared to Zomato’s 70% CAGR, the company’s revenue grew at 40.4% between FY22 and FY24. With the new money, the dark store might increase its marketing budget and speed up its commerce network. Management has also said that the company would keep burning funds to reach its goal of being very large and very competitive in Quick commerce. We recommend a “Subscribe for long term” strategy for the IPO.
Particulars of Swiggy’s IPO
Until November 8, 2024, you can subscribe to Swiggy’s IPO. We expect the Swiggy IPO allocation to occur on November 9, 2024. We can anticipate the distribution of shares on November 11, 2024, if the status of Swiggy’s first public offering (IPO) has yet to be announced on November 9, 2024. The book build issue is expected to be listed on the BSE and the NSE. The Swiggy IPO is scheduled to take place on November 13, 2024.
Source: Swiggy IPO
