Swiggy IPO GMP Shrinks To Indicate 3% Listing Gains Ahead Of Launch
Swiggy's IPO, one of the largest offers this year, is aimed at raising a total of Rs 11,327.4 crore.
Swiggy is set to launch its initial public offering on Wednesday, allowing investors to subscribe until Nov. 8. As of 5:03 a.m. on Wednesday, the company's shares were trading with a grey market premium of Rs 12, representing 3.08% premium over the upper end of the price band set at Rs 390.
This marks a decline from a GMP of Rs 25 on Oct. 29, when the shares began trading in the unlisted market.
Swiggy's initial public offering, one of the largest offers this year, is aimed at raising a total of Rs 11,327.4 crore.
The price band for the IPO is set between Rs 371 and Rs 390 per share, with a minimum application size of 38 shares. The food-delivery business raised Rs 5,085 crore by allocating 13.03 crore shares to high-profile anchor investors.
Use Of Proceeds
Repayment of Scootsy borrowings: Rs 164.8 crore.
Expansion of dark store network: Rs 1,178.7 crore.
Investment in technology: Rs 703.4 crore.
Brand marketing and promotion: Rs 1,115.3 crore.
Debt repayment: Rs 137 crore.
Financial Information
Swiggy's revenue in the quarter ended June 2024 stood at Rs 3,222.2 crore. In the fiscal ended March 31, 2024, it reported a revenue of Rs 11,247 crore, up 36.1% from Rs 8,264.59 crore in fiscal 2023.
The company saw an improvement in losses, reducing from Rs 4,275.74 crore in fiscal 2023 to Rs 2,208.01 crore in fiscal 2024. Its loss in the June quarter of this fiscal stood at Rs 611 crore.
Swiggy's earnings were primarily driven by food delivery, which contributed Rs 1,729.63 crore or 53.7% of the total revenue in the June quarter. Quick commerce business followed with a mop-up of Rs 403.3 crore or 12.5% of the revenue, followed by out-of-home consumption segment, which accounted for only Rs 46.7 crore or 1.4%.
Disclaimer: GMP is not an official price quote for the stock and is based on speculation.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
