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Swiggy Ltd.‘s nearly ₹11,000 crore Initial Public Offering (IPO) will be open between November 6 and November 8, 2024. The company is has set a price band between ₹371 to ₹390 a piece.
Shares for the IPO will be allotted in lots of 38 and its multiples. The IPO consists of a fresh issue of ₹4,490 crore and about 17.5 crore equity shares offered for sale. The company plans to use most of the proceeds of the offer to invest in expansion of its dark stores for its quick commerce business Instamart. Another ₹1,150 crore would be spent on brand expansion and marketing, according to the company’s prospectus.
Swiggy is not yet profitable and that is among the first risks. “We have incurred net losses in each year since incorporation and have negative cash flows from operations. If we are unable to generate adequate revenue growth and manage our expenses and cash flows, we may continue to incur significant losses” the company said in its prospectus.
Speaking about the looming slowdown in urban consumers and its impact on Swiggy’s potential performance, the Chief Executive Officer Sriharsh Majetty said “At this point we are not seeing that. The businesses have been demonstrating strong growth. We continue to serve the consumers well and making sure that demand continues to flow through.” at a media briefing.
Published – October 30, 2024 02:40 pm IST
