Swiggy IPO Details | Apply or Not for Listing Gains

Summary

Swiggy's IPO, like Zomato's, is a key opportunity for investors, but with its own set of challenges. Despite strong revenue growth from ₹5700 crores in 2022 to ₹11,247 crores in 2024, Swiggy is still a loss-making company. This video compares Swiggy's upcoming IPO with Zomato's past performance, discussing pricing, grey market premiums, and investment strategies. While the grey market sentiment is lukewarm, long-term potential exists, particularly as Swiggy expands into new businesses like dark stores and potentially pharmaceuticals. Investors are advised to carefully consider risk and potential returns before committing to the IPO.

Takeaways

• 😀 Swiggy’s IPO opens on November 6, 2024, and closes on November 8, 2024, with a price range of ₹371 to ₹390 per share.
• 😀 Swiggy's revenue has grown from ₹5700 crores in 2022 to ₹11247 crores in 2024, indicating strong growth in the food delivery market.
• 😀 Swiggy is a loss-making company at the moment but has potential for future profitability as it scales its operations and reduces losses.
• 😀 Compared to Zomato's IPO, Swiggy’s IPO is priced at a lower valuation, making it an attractive option for long-term investors.
• 😀 The Grey Market Premium (GMP) for Swiggy shares is currently around ₹5, which is considered low for an IPO, indicating less excitement among investors.
• 😀 Investors can apply for up to 13 lots in the retail category, with a maximum investment of ₹92,000, if they select the upper price band of ₹390 per share.
• 😀 Swiggy’s future growth potential is promising due to its dominance in the food delivery market and plans to expand into new areas like dark stores and e-commerce.
• 😀 Dark stores, which Swiggy is looking to expand, could increase its revenue by enabling rapid delivery of everyday items like snacks, drinks, and essentials.
• 😀 Swiggy's expansion into other business sectors, such as pharmacy, may provide additional revenue streams, boosting its long-term growth potential.
• 😀 If you're new to the stock market, opening a Demat account through a referral link can allow you to apply for the IPO and start your investment journey.

Q & A

What is the primary focus of the video about Swiggy's IPO?

The video focuses on Swiggy's upcoming IPO, its financial history, the potential for profitability, and important details such as the IPO price range, subscription dates, and investment strategies.

What is the revenue growth of Swiggy from 2022 to 2024?

Swiggy's revenue has grown significantly from ₹5705 crore in 2022 to ₹11,247 crore in 2024, doubling its revenue in just two years.

How does the financial performance of Swiggy compare to its competitor Zomato?

Swiggy is currently a loss-making company, whereas Zomato, its main competitor, has transitioned towards profitability despite an initial drop in stock prices post-IPO.

What is the suggested price range for Swiggy's IPO?

The price range for Swiggy's IPO is ₹371 to ₹390 per share.

Why is the grey market premium for Swiggy's IPO considered low?

The grey market premium for Swiggy's IPO is around ₹5, which is low compared to other IPOs that typically have a premium of ₹20-25, signaling less excitement among investors.

What is the lot size for Swiggy's IPO, and how does it affect the investment?

The lot size for Swiggy's IPO is 38 shares. The total investment for one lot at the higher price range (₹390) would amount to ₹14,820.

What are the recommended strategies for retail investors applying for Swiggy's IPO?

Retail investors are advised to select the higher price band for better chances of allotment and to consider using multiple Demat accounts to increase the likelihood of receiving shares.

What is the total amount of money Swiggy plans to raise from the IPO?

Swiggy aims to raise approximately ₹1,132 crore from the IPO.

Why is the valuation of Swiggy’s IPO considered attractive despite being a loss-making company?

Swiggy’s valuation is attractive because of its strong revenue growth and potential for profitability, which could make it a solid investment in the long term despite current losses.

What could be the long-term potential of Swiggy as an investment?

In the long term, Swiggy has the potential for significant growth due to its strong market presence in food delivery and potential expansion into other sectors, like pharmaceuticals, through its app, which could increase its revenue streams.