Swiggy, India’s leading food delivery giant, has officially announced the price band for its highly anticipated Initial Public Offering (IPO), set between INR 371 and INR 390 per share. The IPO is scheduled to open for public subscription on November 6 and will close on November 8, giving investors a unique opportunity to own a stake in one of India’s most popular FoodTech companies.
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Swiggy Sets IPO Price Band at INR 371-390: What You Need to Know
Swiggy’s IPO Price and Valuation Details
The price range of INR 371-390 per share values Swiggy at an estimated $11.3 billion (about INR 11,700 crore) at the upper end of the band, as reported by The Economic Times. Investors can place bids for a minimum lot size of 38 shares and in multiples of 38 thereafter. The allocation of shares follows SEBI’s guidelines:
- 75% reserved for Qualified Institutional Buyers (QIBs)
- 15% reserved for Non-Institutional Bidders
- 10% reserved for Retail Individual Investors
Swiggy has also set aside shares for anchor investors, with anchor bidding slated to begin on November 5, just a day before the IPO opens to the public.
What’s Driving Swiggy’s IPO Valuation?
Originally aiming for a $15 billion valuation, Swiggy revised its target to $12.5-13.5 billion due to recent volatility in the Indian stock market. Invesco, one of Swiggy’s major investors, had recently pegged the company’s valuation at $13.3 billion, which is slightly above the current IPO target. This recalibration signals Swiggy’s willingness to adapt to market conditions and ensure investor interest remains strong.
Swiggy’s valuation is bolstered by several recent strategic initiatives and product launches that are set to fuel future growth. The company has received shareholder approval to increase the fresh issue size from INR 3,750 crore to INR 5,000 crore. Overall, Swiggy aims to raise INR 4,500 crore through fresh equity and up to INR 7,226 crore via an offer for sale.
New Services Launched to Boost Appeal
In preparation for its IPO, Swiggy has been expanding its service offerings:
- Swiggy Bolt: Launched earlier this month in select cities, Swiggy Bolt offers quick-prep food service, catering to customers who need meals fast and efficiently.
- Rare Club: For premium customers, Swiggy introduced a high-end membership program called Rare Club, priced at an annual fee of INR 50,000. This exclusive service provides access to luxury experiences and high-end events.
- Swiggy XL EV: Designed for large orders, Swiggy XL EV is aimed at serving bigger groups, making it a perfect solution for events, office gatherings, and more.
These new services highlight Swiggy’s ambition to diversify its offerings beyond traditional food delivery, appealing to a broader customer base and creating new revenue streams.
Swiggy’s Road to IPO: What’s Next?
Swiggy has filed its updated Draft Red Herring Prospectus (DRHP) with plans to raise substantial funds, which will be allocated to growth initiatives, technology, and expansion. The company is expected to file its final red herring prospectus (RHP) by tonight, further detailing the IPO structure and financial roadmap.
Market Outlook and Investor Takeaways
Swiggy’s IPO offers investors a chance to participate in India’s booming FoodTech sector, which has shown resilience and innovation amid changing consumer habits. With services like grocery delivery, cloud kitchens, and a growing array of premium and bulk order services, Swiggy is positioning itself to tap into diverse markets and customer needs.
For those considering investment, Swiggy’s IPO represents an opportunity to support a company at the forefront of India’s digital economy. By expanding its services and ensuring a robust pricing strategy, Swiggy seems prepared to deliver long-term value for its stakeholders.
Stay tuned for more updates as Swiggy’s IPO journey unfolds, and be ready for November 6, when public bidding officially begins.
