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

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