Recently, Swiggy IPO was approved by its shareholders for an initial public offering (IPO). It is one of the leading food and grocery delivery platforms, founded in 2014 and situated in Bengaluru. It rapidly emerged as one of the dominant players in India’s food delivery space. The company’s innovative technology, wide network of restaurants, and efficient delivery infrastructure have helped it capture a substantial market share and build a strong brand presence.
Now, Swiggy decided to become a private limited company to a public limited firm by releasing the IPO Shares. As it gets approval from the shareholders and expects to raise the fund to Rs 3,750 crore ($450 million) through new shares, and another Rs 6,664 crore ($800 million) through an offer for sale.
According to the ET, this Bengaluru-headquartered swiggy company has not submitted the required IPO document to the Securities and Exchange Board of India(SEBI), still they plan to raise the fund of Rs 750 crore in a pre-IPO round from the investor. After all, it is a huge and popular company in the market.Â
In January 2022, swiggy raised the fund of $700 million by US-based asset management firm Invesco, at a valuation of $10.7 billion.Â
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Swiggy IPO Issue Size
The market report says that Swiggy’s IPO issue size would be  $1 billion (around ₹8,300 crore at the current exchange rate). However, Swiggy is expecting to file the draft red herring prospectus (DRHP) to the SEBI in the next month.
Swiggy IPO Date and Price Band
There is no date of Swiggy IPO or Swiggy IPO price band. It is launched after the company files the draft red herring prospectus (DRHP)Â with the SEBI. You can expect the date and price band probably next year. A filing draft red herring prospectus (DRHP)Â is a document that contains all the information about the number of shares they want to release through fresh issues or any offer on the sale component. You need to wait to know the Swigy Date and more details.
If we analyse the market of 2021, then Swiggy raised ₹9,000 crore through the IPO fresh issue and 375 crore through the OFS (Offer For Sale). Where Zomatao fixed the price band at ₹72 to ₹76 per share. So, you can expect the Swing price brand around it.
Swiggy Shareholding Pattern:
Let’s understand the Swiggy shareholding pattern. The biggest investor of Swiggy is Prosus, a Dutch-listed company. They hold a 33% stake in the company. The second biggest investor of Swiggy is SoftBank. Other notable stakeholders are Accel, Elevation Capital, Meituan, Norwest Venture Partners, Tencent, DST Global, Qatar Investment Authority, Coatue, Alpha Wave Global, Invesco, Hillhouse Capital Group, and GIC.
Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, who are the co-founders of Swiggy, only hold the stake of 4%, 1.6%, and 1.2%.
Want To Invest In Swiggy IPO?
The Swiggy IPO also comes with its set of challenges and risks. The food delivery industry is highly competitive, with multiple players vying for market share. Swiigy has the biggest competition in the market with Zomato. You should plan to be an investor if you are investing in the Swiggy IPO. Here is a guide that you should consider while investing in the Swiggy IPO-
- Research well about the company. Understand its business model, revenue sources, competitive landscape, growth prospects, and any potential risks or challenges
- Read Swiggy’s IPO prospectus carefully. Pay close attention to every detail.
- It is good to consult with a financial advisor or investment professional. They will help you to understand your financial goals, risk tolerance, and investment horizon as well as guide you to invest in Swiggy’s IPO or not.
- Keep an eye on Swiggy’s IPO pricing and valuation metrics.
- If you decide to invest in the Swiggy IPO, then determine how much capital you want to invest.
- Once Swiggy’s IPO opens for subscription, make your investment through a Demat Account or brokerage account.
- Keep track of the post-IPO performance closely. Track the stock’s price movements, trading volume, and any news or developments related to the company.
- Regularly review your investment portfolio to assess its performance and rebalance as needed. According to the performance, you can buy or sell your shares.