The Swiggy IPO is poised to make waves in the Indian market as it aims to raise approximately ₹10,000 crores through a combination of new shares and an offer for sale. Founded in 2014, Swiggy has evolved from a food delivery service into a comprehensive platform that includes quick commerce and local services, enhancing its competitive edge.
For FY24, Swiggy reported revenue of ₹11,247.39 crore, although it continues to grapple with net losses of ₹2,350.24 crore. As the IPO approaches, investor focus will be on the company’s financial health and strategic plans for profitability amid intense competition. This IPO represents a significant milestone for Swiggy as it seeks to solidify its position in the rapidly changing food and grocery delivery landscape, making it an intriguing opportunity for potential investors looking to tap into the growing demand for convenience-driven services.
₹5
₹390
₹420
Expert Opinions
The Swiggy IPO is generating mixed market sentiment, influenced by recent fluctuations in the broader market and concerns over high valuations following lackluster performances of other tech IPOs. The company’s strengths include a strong brand presence and an extensive network of over 200,000 restaurant partners, positioning it well in the competitive food delivery landscape.
However, potential risks and challenges include ongoing net losses, which reached ₹2,350.24 crore for FY24, and intense competition from Zomato and emerging players in quick commerce. In terms of valuation analysis, Swiggy has adjusted its IPO valuation to approximately $11.3 billion, reflecting a strategic response to current market conditions. The long-term investment perspective remains cautiously optimistic, as Swiggy is poised to benefit from increasing demand for food delivery services.
Investor Considerations
Investors considering the Swiggy IPO should evaluate several key aspects. The company performance and fundamentals reflect a robust revenue of ₹11,247.39 crore for FY24, despite ongoing net losses of ₹2,350.24 crore, indicating a need for improved profitability. The sector outlook remains positive, driven by increasing demand for food delivery and quick commerce services in India, positioning Swiggy favorably against competitors like Zomato.
The IPO valuation, targeted at approximately $11.3 billion, has been adjusted to attract investor interest amid market fluctuations. Growth prospects are promising as Swiggy expands its service offerings, including Instamart and Genie, to capture a larger market share. However, potential risk factors include intense competition and operational challenges that could impact margins. A long-term investment horizon is advisable, as Swiggy’s strategic initiatives and market positioning may yield significant returns as the digital economy continues to evolve in India.
| Date | GMP | Trend |
|---|---|---|
| 12 Nov 2024 17.23 | ₹5 | Up |
| 11 Nov 2024 11.19 | ₹00 | --- |
| 10 Nov 2024 12.35 | ₹00 | --- |
| 08 Nov 2024 10.46 | ₹00 | Down |
| 07 Nov 2024 10.18 | ₹10 | --- |
| 06 Nov 2024 10.48 | ₹10 | Down |
| 05 Nov 2024 11.58 | ₹20 | --- |
| 04 Nov 2024 10.44 | ₹20 | --- |
| 31 Oct 2024 11.59 | ₹20 | --- |
| 30 Oct 2024 11.14 | ₹20 | --- |
FAQs
The Grey Market Premium showed limited accuracy in predicting Swiggy’s listing performance. While the GMP of ₹5 suggested a minimal premium of 1.28% over the issue price, the stock actually delivered a more substantial gain of 7.69%. With a prediction error of 6.33%, the GMP correctly predicted the positive listing direction but significantly underestimated the magnitude of gains, demonstrating its limitations as a precise price predictor in this case.
Swiggy IPO Current GMP is ₹5.
Swiggy IPO Expected Returns is 1.28%.
Swiggy IPO estimated listing price is ₹395.