Tue Nov 05 05:58:17 UTC 2024: ## Swiggy IPO Opens with Low Grey Market Premium, Investors Cautious

**Bangalore, India -** Swiggy, the popular food delivery platform, is set to launch its Initial Public Offering (IPO) on November 6th, aiming to raise ₹11,327 crores. However, the IPO is opening amid a lukewarm grey market sentiment with a modest ₹20 premium, indicating a potential listing price of ₹410 per share, only a 5.13% gain for investors.

The IPO, with a price band of ₹371-390 per share, will be open for subscription till November 8th, with anchor investors having access on November 5th. The allotment of shares is scheduled for November 11th, with the listing on BSE and NSE on November 13th.

**Experts Remain Divided on Investment Potential:**

While Swiggy’s IPO has attracted some attention, analysts remain divided on its investment prospects. Some experts, like Akriti Mehrotra of Stockbox, believe that Zomato remains a more attractive investment option due to its larger market share, higher gross order value growth, and profitability.

However, others, like Anshul Jain, recommend caution with Swiggy’s IPO, pointing to the company’s high debt and operating losses despite a growing revenue stream.

**Financials Show Growth But Losses Persist:**

Swiggy’s financials paint a mixed picture. While revenue grew by 36% to ₹11,247.4 crores in FY24, the company still reported losses of ₹2,350.2 crores, a decrease from the previous year’s ₹4,179.3 crores. The company’s revenue also grew by 35% in the June quarter of FY25, but losses increased to ₹611 crores from ₹564 crores in the previous year.

**Swiggy’s IPO is being closely watched as it marks a significant milestone for the Indian food delivery sector. While the company aims to capitalize on its market position and potential growth, investors are advised to carefully assess the risks and potential rewards before making any investment decisions.**

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