Tue Nov 05 11:48:59 UTC 2024: ## Swiggy’s IPO Opens for Subscription, Analysts Divided on Investment

**New Delhi, November 6, 2024:** Food delivery giant Swiggy’s highly anticipated initial public offering (IPO) opened for subscription today, with a price band set at Rs 371-390 per share. The IPO, which is expected to raise Rs 11,327 crore, will remain open until November 8.

Swiggy’s IPO includes a fresh issue of 11.54 crore shares worth Rs 4,499 crore, with existing shareholders offering up to 17.5 crore shares worth Rs 6,828 crore. Investors can bid for a minimum of 38 shares per lot.

Ahead of the opening, Swiggy’s unlisted shares were trading with a grey market premium (GMP) of Rs 8, down from an earlier Rs 20.

**Analysts Remain Divided:** While some brokerages like SBI Securities and Bajaj Broking recommend subscribing to the IPO, citing Swiggy’s growth potential and fair pricing, others caution investors due to the company’s ongoing losses and negative cash flows. Aditya Birla Money and SAMCO Securities advise against investing, highlighting the high valuation and financial struggles.

**Growth Potential and Challenges:** Swiggy reported a net loss of Rs 611.1 crore and revenue of Rs 3,310.11 crore for the June 2024 quarter. Despite the challenges, Swiggy continues to expand its services and enhance operational efficiencies, aiming for future growth.

The IPO proceeds will be used for strategic initiatives including investment in subsidiary Scootsy, technology and cloud infrastructure, brand marketing, business promotion, inorganic growth, and general corporate purposes.

**Allocation and Timeline:** 75% of the shares will be allocated to qualified institutional buyers, 15% to non-institutional investors, and 10% to retail investors. The final allotment is expected on November 11, with a tentative listing date set for November 13 on the BSE and NSE.

**Investors’ Caution Advised:** As retail investors consider participation, a thorough assessment of the company’s prospects and associated risks is crucial for informed decision-making.

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