There were 08 main board IPOs in November 2024 of Afcons Infrastructure Limited, Sagility India Limited, Swiggy Limited, ACME Solar Holdings Limited, Niva Bupa Health Insurance Limited, Zinka Logistics Solutions Limited, NTPC Green Energy Limited and Enviro Infra Engineers Limited as against 07 main board IPOs in October 2024. There were 01 SME IPOs in November 2024 as against 05 SME IPOs in October 2024.
Swiggy Limited:
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About the Company |
Founded in 2014, Swiggy Limited provides its users with an easy-to-use platform that they can access via a single app to search, select, order, and pay for food (Food Delivery), grocery and household goods (Instamart) and have orders delivered to their homes via an on-demand delivery partner network. As of September 10, 2024, Instamart operated a network of 605 Active Dark Stores across 43 cities in India. Swiggy Limited’s revenue increased by 34% and profit after tax (PAT) rose by 44% in FY24. |
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Funds Utilization |
Net proceeds from the IPO will be used for investments in technology and cloud infrastructure; brand marketing and business promotion, repaying debt and allocating funds for inorganic growth and general corporate purposes. |
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IPO Performance |
The Rs. 11,327 Crore IPO consisted of a fresh issue of Rs. 4,499 Crore and an offer for sale of Rs. 6,828 Crore. The issue was oversubscribed over 3.59 times, with QIB’S subscribed the most at 6.02 times to the issue. Shares of Swiggy Limited made an entry on the bourses on November 13, and got listed at Rs 420 at NSE, i.e. a premium of 7.69 percent over the issue price of Rs 390. |
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Valuation |
Swiggy’s initial public offering (IPO) valued the company at approximately INR 958 Billion, at the upper end of its price band of ₹371–390 per equity share. The EV/EBITDA multiple of the company is negative, since it is making operating losses. |
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Selling Stake Holders |
VC firms Accel India, Tencent Cloud Europe, Alpha Wave Ventures and early investors Elevation Capital and Norwest Venture Partners divested fully or part of their holdings through OFS. While, Swiggy’s founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy sold part of their stakes in the public offering. |
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Food Delivery Market |
As per joint report by Bain & Company and Swiggy, India’s food delivery segment is expected to grow at a CAGR of 18% and cross Rs 2 lakh crore by 2030. |
Funds Mobilization by Corporates (Rs. In Crore)
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Particulars |
Sep-24 |
Oct-24 |
|
I. Equity Issues |
50,964 |
54,616 |
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a. IPOs (i+ii) |
16,213 |
34,981 |
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i. Main Board |
14,825 |
33,757 |
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ii. SME Platform |
1,388 |
1,224 |
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b. FPOs |
0 |
0 |
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c. Equity Rights Issues |
671 |
670 |
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d. QIPs/IPPs |
21,483 |
15,589 |
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e. Preferential Allotments |
12,597 |
3,376 |
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II. Debt Issues |
1,29,017 |
76,752 |
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a. Debt Public Issues |
1,695 |
670 |
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b. Private Placement of Debt |
1,27,322 |
76,082 |
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III. REITs/ InvITs |
6,666 |
694 |
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a. REITs |
0 |
0 |
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b. InvITs |
6,666 |
694 |
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Total Funds Mobilized (I+II+III) |
1,86,647 |
1,32,062 |
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.