Swiggy, India’s largest food delivery platform, is set to make a grand debut on the stock market on November 13, 2024. With an IPO that raised ₹11,327 crore, Swiggy has captured the market’s attention, especially as it competes closely with Zomato in the online food delivery space. Here’s a detailed look at Swiggy’s listing, business strategy, financials, share price target, and more.
Swiggy Listing Price Today
Swiggy’s IPO was priced between ₹371-₹390 per share, with a lot size of 38 shares. The offering was well-received, garnering 3.59 times subscription. While institutional investors were highly enthusiastic, retail participation was moderate. Analysts anticipate Swiggy’s shares will list close to the ₹390 price band, with a predicted debut at around ₹392 due to a recent dip in grey market premium (GMP).
| IPO Details | Figures |
|---|---|
| IPO Price Range | ₹371-₹390 |
| Total Raised | ₹11,327 crore |
| Subscription Rate | 3.59 times |
| Listing Date | November 13, 2024 |
Swiggy Business Overview
Swiggy was founded in 2014 and has rapidly grown into India’s largest food delivery platform, connecting millions with local restaurants across 580+ cities. Over the years, Swiggy has diversified its services to include:
- Food Delivery: Swiggy partners with over 130,000 restaurants for fast and reliable food delivery.
- Instamart: Quick delivery of groceries and household essentials.
- Genie: A personal delivery service for sending packages across town.
- Dineout: Restaurant reservations and discounts.
- Cloud Kitchens: A delivery-only setup for popular brands.
Swiggy’s innovative model, wide-ranging services, and tech-driven approach have made it a household name in the Indian market, despite financial hurdles and competition.
Swiggy Financial Performance
Swiggy’s financials for the past three years indicate substantial growth, even as the company grapples with profitability. Here’s a closer look at key financial metrics:
| Metric | FY22 (₹ Cr) | FY23 (₹ Cr) | FY24 (₹ Cr) |
|---|---|---|---|
| Total Income | 6,119 | 8,714 | 11,634 |
| Net Loss | 3,628 | 4,179 | 2,350 |
| Food Delivery Revenue | 5,200 | 6,100 | 6,100 |
| Instamart Revenue | N/A | N/A | 1,100 |
| GOV | 27,700 | N/A | 35,000 |
In FY24, Swiggy reported a 36% revenue increase compared to FY23, reaching ₹11,634 crore. Although it reported a net loss of ₹2,350 crore, this was a 35% reduction from FY23 losses, indicating cost optimization efforts. Swiggy’s steady revenue in food delivery, growing Instamart business, and rising Gross Order Value (GOV) reflect its potential for future growth.
Swiggy Share Price Target From 2024 to 2040
Here’s an analysis of Swiggy’s projected share price target for upcoming years:
| Year | Low Target (₹) | High Target (₹) |
|---|---|---|
| Swiggy Share Price Target 2024 | 400 | 520 |
| Swiggy Share Price Target 2025 | 450 | 600 |
| Swiggy Share Price Target 2026 | 520 | 700 |
| Swiggy Share Price Target 2027 | 600 | 780 |
| Swiggy Share Price Target 2028 | 680 | 860 |
| Swiggy Share Price Target 2029 | 750 | 920 |
| Swiggy Share Price Target 2030 | 820 | 1,000 |
2024: Swiggy shares may start with a target between ₹400-₹520, depending on investor sentiment after listing.
2025: Swiggy’s growth in quick commerce and delivery networks may push prices to a range of ₹450-₹600.
2026: With technological advancements and partnerships, prices could reach ₹520-₹700.
2030: As Swiggy diversifies its services and aims for profitability, shares might reach ₹1,000 if it sustains growth momentum.
While these targets are projections, Swiggy’s ability to balance growth with profitability will be crucial in determining its long-term share price.
Swiggy Shareholding Pattern
Swiggy’s shareholding post-IPO includes prominent institutional investors and key stakeholders:
- Prosus holds the largest stake at 30.95% but is reducing its share by about 5%.
- Accel Partners and Tencent hold substantial stakes as early investors.
- SoftBank is maintaining its stake, reflecting confidence in Swiggy’s potential.
The IPO consists of both new equity and an Offer for Sale (OFS), distributing shares between new investors and existing shareholders.
FAQs
1. What is Swiggy’s expected listing price?
Swiggy’s shares are expected to list close to ₹390, with a possible modest premium due to reduced GMP.
2. How does Swiggy generate revenue?
Swiggy earns from delivery charges, commissions from partner restaurants, and subscription services like Swiggy One.
3. What’s the Swiggy share price target for 2025?
The 2025 target range is ₹450-₹600, based on potential business growth in food and grocery delivery.
4. Is Swiggy profitable?
Not yet. While revenue has grown significantly, Swiggy reported a net loss in FY24, though it has improved its loss margin.
5. Will Swiggy’s share price be impacted by competition with Zomato?
Yes, competition with Zomato and market dynamics in food delivery can affect Swiggy’s share price.
6. Is it advisable to hold Swiggy shares for the long term?
Analysts suggest long-term holding for Swiggy, especially as it works toward profitability and expands its service offerings.
7. What factors will affect Swiggy’s share price in the coming years?
Key factors include market conditions, financial performance, service diversification, and profitability milestones.
8. What is Swiggy Instamart?
Swiggy Instamart is Swiggy’s quick-commerce service, delivering groceries and essentials at rapid speeds.
9. How was Swiggy’s IPO received by different investor segments?
The IPO saw strong interest from institutional buyers with 6.02 times subscription but moderate interest from retail investors.
10. Who are Swiggy’s largest shareholders?
Prosus, Accel Partners, Tencent, and SoftBank are among the major shareholders.
Swiggy’s journey in the stock market is just beginning, and while challenges lie ahead, its strong brand, extensive delivery network, and innovative services offer a promising future. Investors should keep an eye on Swiggy’s performance and growth trajectory to gauge the true potential of Swiggy’s share price target over the years.