Swiggy IPO Date: The IPO of food delivery company Swiggy is opening from 6th November i.e. tomorrow. If you also want to invest in this IPO then this news is for you. Industry experts and many brokerage firms have advised investors not to invest money in the IPO of food delivery company Swiggy. It has also been said that investors should wait until the financial performance and growth outlook of the company improves. Swiggy’s IPO has opened for retail investors from November 6.
Plan to raise Rs 11327.43 crore
Swiggy through public offering of Rs. Plan to raise Rs 11,327.43 crore. Swiggy IPO Rs. 4,499 crore fresh issue of 11.54 crore equity shares and Rs. This involves an offer for sale (OFS) of 17.51 crore shares worth Rs 6,828.43 crore. Semco Securities said in a note to investors that investors would be better off waiting until Swiggy shows better financial results and a clear path to sustainable growth. The company has fixed its price band between Rs 371 and Rs 390.
Swiggy faces losses in fiscal year 2024
Semco Securities said Swiggy has reported a loss in FY24. Considering Swiggy’s current financial position, market competition and valuation compared to its main rival Zomato, which has recently become profitable, the IPO seems overvalued. Swiggy made Rs.200 crore in the last financial year. Net loss of Rs 2,350 crore. However, in FY23 Rs. This was 44 percent less than the loss of Rs 4,179 crore. The company’s revenue is expected to increase by 36 percent to Rs. in FY 2024. Which was Rs 11,247 crore last year. 8,265 crores.
The company has been incurring losses continuously for the last 10 years.
According to brokerage firms, Swiggy has been incurring losses since its inception in 2014. This is due to high operating costs. Bajaj Broking said in its note that the biggest risk to Swiggy’s business is stiff competition from Zomato, Zepto and new entrants in the market. The broking firm further said that the biggest risk with Swiggy is that the company is dependent on the top 50 cities of India for revenue. Swiggy is facing potential challenges due to changes in food delivery rules. In such a situation, investors should invest only with a long term perspective.
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