Tue Nov 05 05:58:19 UTC 2024: ## Swiggy IPO: Is it worth investing or should you stick with Zomato?

**New Delhi:** Swiggy is all set to launch its much-awaited IPO, with retail investors getting the chance to invest in the food and grocery delivery platform from November 6th. The company aims to raise ₹11,327.43 crore through the IPO, offering 11.54 crore fresh shares and 17.51 crore shares under the offer for sale. The price band for the IPO has been set at ₹371 to ₹390 per share.

However, the question on everyone’s mind is: Should you invest in Swiggy’s IPO or stick with Zomato shares? Experts are weighing in on the potential of both companies.

**Zomato’s Market Dominance vs. Swiggy’s Struggles**

Zomato, which debuted on the stock market in July 2021 with an IPO price band of ₹1.07 lakh crore, has seen its market cap nearly double to ₹2.14 lakh crore in November 2024. The company has strengthened its market presence and is now profitable.

On the other hand, Swiggy has reported losses for the past three financial years. While the company aims to become a formidable competitor with its IPO and growth strategy, experts like Aakriti Mehrotra, a research analyst at StoxBox, believe that Zomato currently holds an edge due to its size, profitability, and positive growth signals.

**Experts Recommend Caution with Swiggy IPO**

Anshul Jain from Lakshmisgree Investment shares a similar sentiment. He suggests investors consider Zomato over Swiggy’s IPO, highlighting the large OFS component, which allows existing investors to exit at a higher price. He also points out Swiggy’s consistent losses and the uncertainty surrounding its profitability in the future.

Jain emphasizes that Zomato is a more established and profitable company, setting a two-year target price of ₹550 for the stock.

**Disclaimer:** This news article is for informational purposes only and should not be considered investment advice. The stock market is inherently risky, and all investment decisions should be made after thorough research and consultation with a financial advisor.

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