Introduction to Swiggy and Its Evolution
Since its founding in 2014, Swiggy has redefined India’s on-demand delivery landscape. Originally centered on food delivery, Swiggy has broadened its services to include groceries and logistics, creating a versatile platform for consumers. With a user-friendly app that serves millions, Swiggy prioritizes convenience, particularly in urban areas. Through its commitment to innovation, Swiggy has established itself as a leader in the hyperlocal commerce space.
In this discussion, we will delve into the IPO process and other key details that will help you navigate this exciting investment opportunity, plus the ease brought by HDFC Sky’s groundbreaking ‘One-Click IPO’ feature.
Upcoming Initial Public Offering (IPO)
Swiggy is set to embark on an Initial Public Offering (IPO) from November 6 to November 8, 2024, inviting investors to be part of its growth story. The IPO aims to raise a total of ₹11,327.43 crores, which includes a fresh issue of ₹4,499 crores and an offer for sale of ₹6,828.43 crores.
Opening demat account can greatly enhance your investment experience, particularly for those interested in the Hyundai IPO.
Key IPO Highlights
- Total Issue Size: ₹11,327.43 crores
- Fresh Issue Amount: ₹4,499 crores
- Offer for Sale Amount: ₹6,828.43 crores
- Face Value: ₹1 per share
- Price Band: ₹371 to ₹390 per share
- Lot Size: 38 shares
- Listing Exchange: BSE and NSE
Schedule for the IPO Process
| Event | Date |
| IPO Opening Date | November 6, 2024 |
| IPO Closing Date | November 8, 2024 |
| Basis of Allotment | November 11, 2024 |
| Initiation of Refunds | November 12, 2024 |
| Credit of Shares to Demat | November 12, 2024 |
| Listing Date | November 13, 2024 |
The IPO Allotment Process
Understanding the IPO allotment process is crucial for investors aiming to secure shares in an upcoming offering. After the subscription period closes, the company reviews applications and determines the number of shares allocated to each applicant. Investors submit their applications through various channels, such as investment apps.
If demand exceeds supply, a pro-rata allocation system may be used, distributing shares based on the proportion applied for. The allotment status will be announced on 11 November 2024, allowing investors to check their share allocation. Successful applicants will have their shares credited to their Demat accounts on 12 November 2024, with listing on the NSE and BSE on 13 November 2024.
Understanding Swiggy’s Business Model
Swiggy operates a multi-service platform, connecting consumers with various offerings, including food delivery, grocery shopping, and event bookings, all through a single app. The introduction of features like “Swiggy One,” which provides subscription-based discounts, along with in-app payment options such as Swiggy Money and UPI, enhances the user experience.
Financial Overview
Swiggy’s financial trajectory shows both growth and challenges. The company’s financial performance shows notable trends. Total assets declined from ₹14,405.74 crore in FY 2022 to ₹10,341.24 crore by June 2024, indicating possible restructuring or optimization efforts. Conversely, revenue increased significantly from ₹6,119.78 crore in FY 2022 to ₹11,634.35 crore in FY 2024, reflecting a 34% year-over-year growth, with ₹3,310.11 crore reported in June 2024.
Despite the improvement, the Profit After Tax (PAT) remains negative but shows progress, with losses reduced from ₹-4,179.31 crore in FY 2023 to ₹-2,350.24 crore in FY 2024, and a smaller loss of ₹-611.01 crore by June 2024. Net worth fell from ₹12,266.91 crore in FY 2022 to ₹7,444.99 crore by June 2024, highlighting equity strain from ongoing losses. Reserves also declined to ₹-7,750.85 crore in June 2024 from ₹-3,311.1 crore in FY 2022, reflecting accumulated losses.
Total borrowing rose slightly from ₹211.19 crore in FY 2024 to ₹256.61 crore by June 2024, indicating minimal reliance on debt relative to total assets. Overall, these figures suggest the company is undergoing financial adjustments while striving for improved operational performance.
Strengths Driving the IPO
- Market Leadership: Swiggy’s established brand and extensive user base of 112.73 million.
- Innovative Technology: Advanced tech stack supports seamless user experiences and service integration.
- High Engagement: Users average 4.5 transactions monthly, indicating strong customer retention.
Challenges to Consider
- Financial Health: Ongoing net losses pose questions about sustainability.
- Competitive Pressure: The delivery market is saturated, with many rivals vying for the same customer base.
- Operational Risks: Effective management of logistics, especially with Dark Stores, is crucial to maintain service levels.
Future Growth Prospects
Swiggy aims to enhance its market position through:
- Expansion of Service Offerings: Introducing more products and services to boost customer engagement.
- Investment in Technology: Upgrading tech infrastructure to improve operational efficiency.
- Brand Awareness Campaigns: Implementing marketing strategies to strengthen brand presence.
Investors interested in participating in the IPO should ensure they have the necessary tools in place. Additionally, having a SIP app can help investors diversify their investments over time, reducing risk and enhancing potential return
How to Invest in Swiggy’s IPO with HDFC Sky
HDFC Sky offers a streamlined process for applying to the Swiggy IPO through its One-Click feature, making it easier for investors to participate. Here’s how to navigate the application process:
- Log Into HDFC Sky: Use your account credentials to access the platform.
- Find the IPO Section: Go to the “Indian Stocks” tab and select “IPO.”
- Choose Swiggy IPO: Click on Swiggy from the IPO listings and select “Apply Now.”
- Enter Bid Details: Fill in your bid amount and adjust your application as desired.
- Select Payment Method: Opt for UPI to process your payment.
- Authorize Payment: Confirm the transaction through your UPI app.
- Complete Your Application: Submit your order to finalize the process.
Benefits of HDFC Sky’s One-Click IPO
- User-Friendly: Simplifies the application process, reducing paperwork.
- Real-Time Updates: Get instant notifications about application status and refunds.
- Centralized Management: Keep track of all IPO investments in one place.
- Accessible Anywhere: Apply from any location using the HDFC Sky app or portal.
Conclusion
Swiggy’s IPO represents a significant investment opportunity in a growing sector. With the ease of HDFC Sky’s One-Click feature, participating in this venture is straightforward and efficient. Don’t miss the chance to be part of Swiggy’s journey in the on-demand delivery market!
