Swiggy Limited IPO: Most Awaited IPO

Swiggy Private Limited submits DRHP with SEBI and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 3,750 crore of equity shares and an offer for sale of up to 18.52 crore equity shares. The total aggregate size of a public issue in rupees and the number of equity shares have not yet been disclosed by the company. The face value mentioned by the company is Re 1 per each. This new IPO issue is being made through the book-building process with a reservation of less than 75% of the new offer reserved for Qualified Institutional Investors, not more than 15% reserved for NII and not more than 10% reserved for Retail Individuals. The opening and closing dates of this IPO have not yet been disclosed, and the company will announce the price band soon.

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About Swiggy Limited

The company was incorporated as 'Bundl Technologies Private Limited' on December 26, 2013, and further changed its name to "Swiggy Private Limited". Swiggy, a leading consumer-first technology company, offers a unified convenience platform for food delivery, grocery shopping, and other hyperlocal services. Launched in 2014, Swiggy has pioneered the Indian hyperlocal commerce market, providing services such as food delivery, quick commerce via Instamart, restaurant reservations with Dineout, event bookings through SteppinOut, and product pickup/dropoff services via Swiggy Genie. With a robust on-demand delivery partner network, the platform enables users to access a wide variety of services, all through a single app.

Swiggy's innovation-led approach and extensive network of partners have solidified its position as a market leader, particularly in Food Delivery and Quick Commerce. Its membership program, Swiggy One, and in-app payment solutions further enhance the user experience. Recognized as India's most valuable consumer technology brand, Swiggy's multi-business model efficiently caters to urban users' needs, from ordering food to managing household deliveries.

Swiggy Limited IPO Objectives

The company plans to utilize the net proceeds from the IPO fresh issue by investing Rs 137.41 crores in its material subsidiary, Scootsy, for repayment or prepayment of borrowings. Additionally, Rs 982.40 crore will be allocated for expanding its Quick Commerce segment, including Rs 559.10 crore for setting up Dark Stores and Rs 423.30 crore for lease or license payments. Further, Rs 586.20 crore will be invested in technology and cloud infrastructure, while Rs 929.50 crore will be used for brand marketing and business promotion to enhance platform visibility. The remaining funds will support inorganic growth through acquisitions and general corporate purposes.

Financials of the Company

The financial performance for the periods ending March 31, 2024, and March 31, 2023, shows notable changes. The company's revenue grew significantly from Rs 8,264.60 crore in March 2023 to Rs 11,247.39 crore in March 2024, reflecting a strong improvement in sales. However, the company continued to operate at a loss, though the loss after tax decreased from Rs 4,179.31 crore in March 2023 to Rs 2,350.24 crore in March 2024, indicating an improvement in profitability. On the other hand, the total assets decreased slightly from Rs 11,280.65 crore in 2023 to Rs 10,529.42 crore in 2024, showing a marginal reduction in the company's asset base.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Jefferies India Private Limited and Avendus Capital Private Limited which are the book-running lead managers of this public issue. The company has appointed Link Intime India Private Limited as the registrar for this public issue. The company does not have any identifiable promoter (As per DRHP, filed by the company to the SEBI).

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