Swiggy IPO: Zomato rival’s ₹11,327 crore IPO to hit the street on November 6
After slashing its valuation by 25% ahead of its IPO, Swiggy’s ₹11,327 crore IPO will open for public bidding between November 6th, 2024, and November 8th 2024. Swiggy’s share sale is expected to be India’s second-largest IPO in 2024. According to media reports, the company is valued at around $11.3 billion, far lower than its earlier value pegged at $15 billion
Let us look at the details of Swiggy’s share sale.
IPO Details: Offer for sale + Fresh issue
Swiggy’s ₹11,327-crore IPO is split into two—an offer for sale of shares by existing investors and a fresh issue of shares worth up to ₹6,628 crore and a fresh issue of shares worth ₹4,499 crore. The IPO price band is ₹371-₹390. The offer will open on November 6th 2024 and end on November 8th 2024.
Swiggy’s shareholders like Accel, Apoletto Asia, Alpha Wave, Elevation Capital, Prosus, Norwest Venture Partners, among others are selling part of their stake in the company.
The minimum lot size is 38 shares which amounts to a minimum investment of ₹14,820 at the upper end of the price band.
Objects of the issue
From the fresh issue of shares, the company plans to use it for the following
Investment in Scootsy to pay off debts
Expansion of QC dark stores
Lease payments for dark stores
Investment in cloud infra and tech
Brand marketing and business promotion
Funding any future acquisitions
General corporate purposes
Financials: Decreasing losses and cash burn
Swiggy has been burning cash for the past couple of years. But this has come down considerably. This is what the company’s revenue and net profit numbers look like—
Rs in crore | FY22 | FY23 | FY24 | Q1FY23 | Q1FY24 |
|---|---|---|---|---|---|
| Revenue | 5,704.90 | 8,264.60 | 11,247.39 | 2,389.82 | 3,222.22 |
| Profit | -3,628.90 | -4,179.31 | -2,350.24 | -564.08 | -611.01 |
In terms of operating cash flows, this is what the company’s operating and free cash flow numbers look like—
Rs in crore | FY22 | FY23 | FY24 | Q1FY23 | Q1FY24 |
|---|---|---|---|---|---|
| Operating cash flows | -3,900.39 | -4,059.91 | -1,312.74 | -173.78 | -516.63 |
| Free cash flow | -4,127.82 | -4,217.20 | -1,656.75 | -256.18 | -585.62 |
More Related Articles
IPO vs NFO
30 July 2024 | 5 mins read
The simplest way of enhancing your wealth is to invest your money into avenues that are profitable and in line with your financial goals and risk appetite. And the two most popular investment avenues for retail investors are direct equities and mutual funds. But in case of both these instruments, a pressing concern is – whether to invest in an existing scheme / publicly traded company or opt for a new fund offer / initial public offer? Before we weigh the pros and cons of NFO and IPO, we first need to understand their meaning and characteristics to judge their suitability.
What is Shelf Prospectus
6 August 2024 | 7 mins read
If you're curious to know about what a shelf prospectus is and how it fits into the financial world, you've come to the right place. Let us break it down into simple terms.
How to Apply for IPO using UPI?
30 July 2024 | 5 mins read
Initial Public Offering (IPO) is one of the most sought-after investment options in India. In fact, a majority of retail investors open a Demat account with the sole purpose of investing in IPOs. Gone are the days when applying for an IPO involved filling physical forms and standing in queue with your broker or bank to submit your application. With the growth of online share trading, introduction of Application Supported by Blocked Amount (ASBA) and UPI, applying for an IPO has become extremely simple and hassle-free. Let us understand how to apply for IPO using UPI.